Thursday May 21, 2015, 11:58am PDT
The Australian Financial Review reported that the Chilean government has taken BHP’s (NYSE:BHP) Spence copper expansion from its 10 year development timeline for projects in the country. The government said that it expects BHP to miss its target of first production by 2020.
As quoted in the press release:
"While BHP has prioritised the expansion of its massive Escondida copper mine in Chile in recent years, it has also signalled to investors its Spence Hypogene project in the north of the country, could drive its supplies of the red metal over the medium term.
BHP has conducted a pre-feasibility study to deliver copper from the hypogene ore body that lies beneath its existing Spence mine by 2020 as part of a plan to extend the life of the facility by up to 50 years.
However, Chile’s state-run copper commission Cochilco discounted it as a project likely to take shape in the next decade, saying it expected the timeline to slip, with Escondida remaining the priority.