BHP Billiton to invest $ 7.4 billion for growth of iron ore operations

Ian Ashby, President Iron Ore, BHP Billiton.

MELBOURNE, AUSTRALIA: BHP Billiton approved $ 7.4 billion (BHP Billiton share $ 6.6 billion) of capital investment to continue production growth in the company’s Western Australia Iron Ore operations. It will deliver an integrated operation with capacity in excess of 220 million tonnes per annum (mtpa), on a 100 per cent basis, with first production expected from the new Jimblebar mine in early 2014.

The investment includes - $ 3.4 billion (BHP Billiton share $ 3.3 billion) for the development of Jimblebar mine and rail links, and the procurement of mining equipment and rolling stock that will deliver initial capacity of 35 mtpa, with embedded options for expansion to 55 mtpa for incremental capital investment. A further $ 2.3 billion (BHP Billiton share $ 1.9 billion) to develop Port Hedland and lastly $ 1.7 billion (BHP Billiton share $ 1.4 billion) for port blending facilities and rail yards to enable ore blending, the expansion of resource life and to prepare for the future growth of the business beyond the inner harbour.

“Our intent with these projects is to develop port capacity that, with subsequent debottlenecking, will allow us to fill our 240 mtpa allocation in the Port Hedland inner harbour. We have intentionally overbuilt the ore handling facilities at Jimblebar and expect to incrementally grow mine production to ensure that our port and rail systems are operated at full capacity during this debottlenecking programme,” said Ian Ashby, President Iron Ore, BHP Billiton.

(C) WOC News