BHP Escondida mine may delay moly project-paper

SANTIAGO, Nov 27 (Reuters) - Global miner BHP Billiton (BHP.AX: Quote, Profile, Research) (BLT.L: Quote, Profile, Research) is reviewing whether to build a $120 million molybdenum processing plant at the giant Escondida mine in Chile, the Diario Financiero reported on Thursday.

Molybdenum prices have fallen in a global commodity market retreat to near $10 per pound, from more than $30 per pound as recently as October, and forecasters and major producers say it could hold at that level for the next year at least.

Escondida, the world's largest copper mine, has been considering investing between $120 million and $150 million to build a major molybdenum processing plant that would churn out some 4,000 tonnes per year of the metal.

"We'll have to see whether or not its worth going through with it at these prices," Diego Hernandez, the president for base metals for majority-owner BHP Billiton, told the newspaper.

The company could not be reached for immediate comment on the report.

Molybdenum is used to strengthen steel, and make it rust proof and resistant to extreme temperatures. It mostly occurs as a by-product of copper.

Chile is the world's largest copper producer. (Reporting by Pav Jordan; Editing by Steve Orlofsky)