BHP Billiton expands Western Australian iron ore projects
Posted: 25 July 2003
BHP Billiton announced it would be accelerating the development
of its Western Australian iron ore expansion projects, to ensure
a system capacity of 100 million tonnes per annum (Mtpa) by the
end of the second quarter of CY2004.
President Carbon Steel Materials Bob Kirkby said the accelerated
development of Area C and the Products and Capacity Expansion (PACE)
would provide a low cost, low risk means of maximising returns from
the current strong iron ore market conditions.
“The accelerated expansion will also provide system capacity
to ensure we can meet the ongoing growth in demand for both the
new Marra Mamba ores and the existing Brockman and Yandi ores in
the Asian region, particularly China,” he said.
Under the original program, announced on 3 April 2002, the capacity
of Area C was to be incrementally expanded to 15 Mtpa by 2011. This
capacity will now be available by the first quarter of CY2004.
Similarly, the original schedule for PACE provided the foundations
for expansion to 100 Mtpa by 2011. This capacity will also be available
at the port by the first quarter of CY2004, without additional expenditure.
Capacity on the Newman to Port Hedland rail line will be expanded
to 100 Mtpa by the end of the second quarter of CY2004, with the
addition of three extra sidings and 240 new ore cars – aligning
all three elements of the system.
Capital expenditure for the additional sidings and ore cars, increased
ore processing capability at Area C, and accelerated pre-stripping
at Mt Whaleback is expected to be in the order of US$50 million
(BHP Billiton share US$42.5 million).
“These acceleration initiatives support key elements of BHP
Billiton’s iron ore growth strategy including the introduction
of new high ‘Value-in-Use’ products, such as MAC(TM),
to meet the needs of high technology customers,” Mr Kirkby
said.
In addition, BHP Billiton recently approved the installation of
a five kilometre overland conveyor and additional ore handling facilities
at the Yandi mine. The new facilities will raise Yandi’s capacity
by three million tonnes, to 42 Mtpa, early in the first quarter
of CY2004 and will also improve operating efficiencies. Capital
expenditure for this high value brownfields expansion is expected
to be in the order of US$27 million (BHP Billiton share US$23 million).
“We are also undertaking feasibility studies for further
expansions of the Western Australian iron ore business, should the
market warrant, to 120 Mtpa. This will ensure we are well placed
to maintain our position as one of the world’s leading suppliers
of iron ore and will include a wide range of high quality Hematite,
Pisolite and Marra Mamba ores,” Mr Kirkby said.
Area C is located 37 kilometres from BHP Billiton’s existing
Yandi mine in the north west of Western Australia and is the largest
undeveloped Marra Mamba resource in the Pilbara.
The first production cargoes are scheduled for loading in September,
and the project will be officially opened on 30 October 2003. Customer
feedback from trials of bulk sample product has been positive, with
strong interest also expressed from China.
PACE construction continues on schedule and detailed engineering
has been completed. The project is within budget and is on track
to commission ahead of schedule in the first quarter of CY2004.For
more information see www.bhpbilliton.com.
Posted by Richard Price,
Editor Pipeline Magazine
Information supplied by companies
or PR agencies who are responsible for content. Send press releases
to info@pipelinedubai.com |
