BHP Land Deal with Nyiyaparli People to Boost Output of Iron Ore to 350M Tonnes by 2020

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BHP Billiton ( BHP ) inked a native land agreement in the Pilbara with the Nyiyaparli people. The signing would lead to expansion of the mining giant's iron ore operations and boost its output to 350 million tonnes by 2020 from the current 120 million tonnes.

It is the second agreement for the Nyiyaparli people which signed in 2011 a similar agreement with another mining giant, Rio Tinto ( RIO ). The BHP deal will provide the natives about $2 billion over 40 years in exchange for 70,000 square kilometers of their lines which would result in the opening of 40 new iron ore mines. BHP did not disclose the actual amount of the deal but industry observers believe it is within the same range as the deal signed by Rio Tinto.

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This article appears in: Investing , Commodities
Referenced Symbols: BHP , RIO

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