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BHP Billiton redistribute investments

30 December 2014

One of the leaders of the mining corporation BHP Billiton, is planning a redistribution of investment. The outflow from the iron ore giant plans to invest in copper, assuming that step to satisfy the increased demand from China. Andrew Mackenzie, chief executive officer, in the future is going to invest most of the money is in copper. The company plans to increase copper trading in China. BHP Billiton also intends to contribute to the development of mines in Chile, Peru, North America and South Australia.

In an effort to boost demand on the part of the steel produced in China, the world's iron ore industry leaders have invested about 120 billion. USD in the development of iron ore mining. As a result — the formation of excess in this sector and a reduction in raw material costs. Last month, the value of the ore for the first time since 2009 fell below 70 USD / ton. BHP Billiton unlike many competitors faced the problem of falling oil prices. Quotations decrease per $ leads in general to a loss of income of 50 million. USD.

Now the corporation BHP Billiton expects growth in consumer demand for the red metal from China. It is for this reason will change the model of investment. After 2018, according to analysts the copper market will be in deficit. Over the last 5 years the company has invested in copper projects about 13.3 billion. USD.

However, the price of copper on the LME fell slightly in early December. The reason for decrease was the negative information on China's foreign trade dynamics. Another factor is the impact of industrial production in Germany.

CODELCO, which is a Chilean mining leader, recently summed up the results for the third quarter and for the period from January to September, 2014. Smelting of copper in January-September this year, a slight increase with respect to last year's figures. The increase was 3.8% to reach 1.36 million. Tons. During the third quarter grew by 3.4% to 483,000 tonnes. Production of pure molybdenum for the period from July to September with respect to the previous quarter declined slightly. Its volume amounted to 7,000 tons. However, this figure is much higher than the results of last year, when production volume reached 4,900 tons. molybdenum production in January-September compared to the same period in 2013 increased by 41.4%, which was 22 900 tonnes. In the past year the level of production reached the level of 16,200 tonnes.

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