BHP eyes review of delayed Chile projects in 2010

By Manuel Farias

SANTIAGO, June 8 (Reuters) - BHP Billiton (BHP.AX) (BLT.L), the world's largest diversified miner, said on Monday it would revise delayed expansion projects in Chile early next year if a recovery in copper prices is sustained.

BHP Billiton (BHP.AX) (BLT.L) axed 6,000 jobs globally at the beginning of the year due to a slump in copper prices amid the global financial crisis.

The miner has also delayed major projects, including the expansion of the world's biggest copper mine, Escondida, in which it has a majority stake.

"If copper prices continue at this level, mining companies including us will be in a position to review our expansion projects, which were delayed due to the (financial) crisis and low prices, from next year," Diego Hernandez, head of base metals at the company, told reporters.

Chile is the world's largest copper producer, but falling ore grades at bigger mines and mechanical failures hit output in 2008 and the global financial crisis has pummeled demand.

Output at Escondida fell 30 percent in the first quarter from a year earlier due to lower ore grades and the failure of a SAG mill, or semi-autonomous grinding mill.

"In July we are going to stop (the SAG mill) for 45 days to make definitive repairs. At the end of August we should be done with definitive repairs and should be back at nominal production capacity," Hernandez said. (Writing by Alexia Vlahos; Editing by David Gregorio)