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Top miners to spend $244 billion in the next two years

by Cecilia Jamasmie | September 4, 2013 | Reprinted by permission of Mining.com

The world’s largest mining companies are planning to spend over $244 billion on expansions to 2015, reports Bloomberg Television’s “The Pulse.”

Despite Glencore Xstrata’s CEO Ivan Glasenberg’s recent call for austerity in the industry to end an oversupply in mineral markets, top miners are reportedly set to spend just 2.4% less than in the previous three years.

Top miners to spend $244 billion in the next two years

BHP Billiton and Rio Tinto seem to believe the recovery has begun.

Only in Australia, home of giant mining companies BHP Billiton and Rio Tinto, business investment rose last quarter driven by strong mining spending, according to the Bureau of Statistics.

“The capital spending numbers confirm mining investment isn’t headed for a sharp decline in coming quarters,” Katrina Ell, an economist at Moody’s Analytics in Sydney, was quoted as saying last month.

After shelving projects worth about $68 billion last year, BHP—the world’s No. 1 mining company—decided in August to go ahead with a $2.6-billion investment in its Jansen potash project in Canada.

And Rio Tinto, the world’s second biggest producer of sea-traded iron ore after Brazil’s Vale, is injecting a further $5 billion into its Australian operations to take annual capacity to 360 million tonnes.

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Reprinted by permission of Mining.com

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