Our growth pipeline
Xstrata has an extensive organic growth pipeline with major expansion projects at every stage of the project development cycle to
deliver a number of world class projects. The organic pipeline comprises:
22 approved major projects in implementation, all of which remain on schedule, comprising capital expenditure of $15 billion;
Nine further projects on track for near-term approval with total capital expenditure of $7 billion
; and
A number of additional significant projects in pre-feasibility or concept stage.
Substantially all of the projects that are required to achieve our target of 50%volume growth by end-2014 are approved, with
80%of the 50%volume growth accounted for by projects that are currently in construction.
Once commissioned, approved projects will cement Xstrata’s top five market position in major commodities, delivering new, lower
cost production that will further reduce costs by around 20%robust returns, even at conservative long-run commodity prices.
Xstrata is now in the midst of a
fundamental transformation of our
portfolio through the development
of our organic growth pipeline.
By the end of 2014, volumes will be
increased by 50% over 2009
production and the introduction of
lower cost capacity is anticipated to
deliver a reduction of around 20%
in average operating costs.
plus Xstrata coughs up about another 3B in profits annually. So just Xstrata alone plans to spend 10B plus on growth opportunities over the next couple of years and just in profits they'll have estimated 10B more to deploy...wow
How the heck do you get a 20% overall reduction in operating cost unless you pick up large projects that have amazing economics, like -32 cents a pound of cu...maybe?
http://www.xstrata.com/content/assets/pdf/pub_x_factsheet_2011q2.en.pdf
