By Ross Kelly
Australian Foundation Investment Co. (AFI.AU), a fund that owns
shares in BHP Billiton Ltd. (BHP, BHP.AU), said Sunday that it
would encourage miners to reassess the viability of new projects
amid softer commodity prices.
Although there is likely to be a lot more economic growth in
China, a period of very high commodity prices appears to be coming
to an end, AFI Chief Executive Ross Barker told the Australian
Broadcasting Corp. in a television interview. AFI owns less than 1%
of BHP Billiton shares.
"There are still an enormously large number of mining projects
in train and on the drawing board in Australia. The big question
for immediate- to long-term investors is how many of those will
actually get up," Mr. Barker said.
His comments come after the Australian newspaper, citing
documents it obtained from an unidentified consultancy, reported
that BHP Billiton has delayed by two years, to 2014, a decision on
whether to proceed with the A$30 billion expansion of the Olympic
Dam uranium, copper and gold mine in South Australia state.
Representatives for BHP Billiton in Sydney wouldn't comment
Sunday on the company's timetable for Olympic Dam.
"We will approve projects in a sequence that maximizes value,
reduces risk and balances the consideration of short- and long-term
returns," a BHP spokeswoman said.
Write to Ross Kelly at ross.kelly@wsj.com
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