14th Jun 2018 11:52
LONDON (Alliance News) - BHP Billiton PLC on Thursday said it is to spend USD2.9 billion on the South Flank iron mine project in the central Pilbara region of Western Australia.
BHP said South Flank will "fully" replace production from the nearby Yandi mine, which is reaching the end of its economic life.
The Anglo-Australian miner is to build an 80 million tonne of ore per year crushing and screening plant at South Flank, as well as a conveyor system, stockyard and train loading facilities, and also buy a new mining fleet and undertake "substantial" mine development work.
BHP is hoping to have first ore from South Flank during 2021, and its life-of-mine is expected to be over 25 years.
Mike Henry, BHP's president of operations for Minerals Australia, said: "South Flank is a capital efficient project which offers attractive returns, and which was approved following a thorough evaluation under BHP's capital allocation framework."
"The project will create around 2,500 construction jobs, more than 600 ongoing operational roles and generate many opportunities for Western Australian suppliers. It will enhance the average quality of BHP's Western Australia iron ore production and will allow us to benefit from price premiums for higher-quality lump and fines products."
Shares were 1.8% lower on Thursday at 1,718.00 pence each.
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