BHP Billiton To Go Spending Spree...But Not On M&A

BHP Billiton (NYSE: BHP, the world's largest mining company, is planning a spending spree, but this time it won't be on mega-deals gone wrong. After reporting a 72% jump in its fiscal first-half profit, the Anglo-Australian mining giant, said it will spend $80 billion to develop and expand its own coal, iron ore and other mines and oilfields. The company also said it will add $10 billion to its share buyback plan and raise its dividend by 10% to 46 cents a share. The news that BHP is taking a pass on major acquisitions could come as a relief to wary investors that have seen the company fail at several mega-deals over the past four years. BHP's attempt to acquire rival Rio Tinto RIO, the world's third-largest mining company, fell apart in 2008 due to the global financial crisis. In 2010, the company saw its $38.6 billion hostile bid for Potash Corp. POT stymied by the Canadian government and a major iron ore joint venture with Rio in Australia was scrapped due to regulators' concerns about competition. BHP's decision to at least say it will take a pass on big M&A follows suit with similar talk from Brazilian rival Vale VALE, the number two mining company in the world. Vale will spend $24 billion this year on organic growth and pass on big deals, according to Bloomberg News. Mining takeovers reached the second-highest value on record last year, worth $144.5 billion, according to data compiled by Bloomberg. BHP has also been rumored to be interested in acquiring Anadarko Petroleum APC and Australia's Woodside Petroleum.