4th Feb 2008 07:00
BHP Billiton PLC03 February 2008 4 February 2008Number 05/08 BHP BILLITON APPROVES FUNDING FOR ACCELERATED GROWTH AT WESTERN AUSTRALIA IRON ORE (WAIO) BHP Billiton today announced approval for US$1.094 billion (BHP Billiton shareUS$930M)(1) of capital expenditure to underpin accelerated growth of our WAIObusiness. This amount represents pre approval expenditure for Rapid GrowthProject 5 (RGP5). RGP5 is expected to increase WAIO's installed capacity to morethan 200 million tonnes per annum (Mtpa) during calendar year 2011. This pre-approval funding will be used to commence duplication of the railwaytrack between the Yandi mine and Port Hedland and begin the expansion of theinner harbour at Port Hedland. Construction of this second railway is expectedto begin in May 2008, subject to various government approvals. The early fundingwill also allow early procurement of long lead items and detailed engineeringstudies to expand capacity at Yandi and Area C. President BHP Billiton Iron Ore, Ian Ashby said "The core of the Pilbara isprogressively moving to the Yandi/Area C mining hubs. Double tracking the railto this area will create the rail capacity to support our planned expansion tomore than 300 Mtpa. "In parallel with this project, we are advancing our studies on the outerharbour development at Port Hedland. Combined with the RGP5 rail work, the portexpansion would complete the major infrastructure requirements to support anoperation of over 350 Mtpa," he said. In the last quarter BHP Billiton delivered RGP3 which expanded the capacity atArea C by 20 million tonnes per annum and RGP4 is on track to increase installedcapacity to 155Mtpa in calendar year 2010. The approval for the balance of the RGP5 capital is expected during the secondhalf of calendar 2008. The early investment in RGP5 is expected to result inincremental production, beyond RGP4's capacity, before RGP5 is completed in2011. (1) BHP Billiton's partners in its Pilbara iron ore operations are: ItochuMinerals & Energy of Australia Pty Ltd, Mitsui-Itochu Iron Pty Ltd and MitsuiIron Ore Corporation Pty Ltd. BHP Billiton share is 85%. Further information on BHP Billiton can be found on our Internet site:www.bhpbilliton.com Australia United KingdomSamantha Evans, Media Relations Andre Liebenberg, Investor RelationsTel: +61 3 9609 2898 Mobile: +61 400 693 915 Tel: +44 20 7802 4131 Mobile: +44 7920 236 974email: [email protected] email: [email protected] Don Carroll, Investor Relations Illtud Harri, Media RelationsTel: +61 3 9609 2686 Mobile: +61 417 591 938 Tel: +44 20 7802 4195 Mobile: +44 7920 237 246email: [email protected] email: [email protected] United States South AfricaTracey Whitehead, Investor & Media Relations Alison Gilbert, Investor RelationsTel: US +1 713 599 6100 or UK +44 20 7802 4031 Tel: SA +27 11 376 2121 or UK +44 20 7802 4183Mobile: +44 7917 648 093 Mobile: +44 7769 936 227email: [email protected] Email: [email protected] BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209Registered in Australia Registered in England and WalesRegistered Office: Level 27, 180 Lonsdale Street Melbourne Registered Office: Neathouse Place London SW1V 1BH UnitedVictoria 3000 KingdomTelephone +61 1300 554 757 Facsimile +61 3 9609 3015 Telephone +44 20 7802 4000 Facsimile +44 20 7802 4111 The BHP Billiton Group is headquartered in Australia This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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