Seems things are looking up in the iron ore industry...
SYDNEY-- BHP Billiton Ltd. (BHP.AU) said plans to develop its South Flank iron-ore deposit in remote northwest Australia are the most likely way it will replace production from its aging Yandi operation.
BHP has been mulling new investments in its iron-ore business given its Yandi mine, which currently produces about 80 million tons a year, or roughly one-third of BHP's iron ore, is expected to run out of resources in the coming five-to- 10 years.
"We are looking at options to replace this production" and "South Flank is the preferred long-term solution, subject to board approval being obtained," Western Australia Iron Ore Asset President Edgar Basto said on Wednesday.
He said BHP is confident in the outlook for its iron-ore business, which the world's No. 1 miner by market value relies on for a large portion of its profits, despite projecting that rising global supplies will outpace demand in the years ahead.
