20th Oct 2005 07:01
BHP Billiton PLC20 October 2005 20 October 2005 Number: 40/05 BHP BILLITON TO INCREASE CAPACITY AT WESTERN AUSTRALIAN IRON ORE OPERATIONS BHP Billiton today announced approval for the Rapid Growth Project 3 (RGP3)which will increase capacity at its Area C iron ore mine in Western Australia by20 million tonnes per annum (Mtpa) to 42Mtpa. Work on the project will commenceimmediately, with initial production forecast to begin in the fourth quarter ofcalendar year 2007. The Board has approved capital expenditure of US$1.3 billion for BHP Billiton's85 per cent share of the project. This includes approximately US$235 million ofsustaining capital required for the replacement of ageing port and railinfrastructure. The capital expenditure fully reflects recent cost increasesthat have been experienced in the resources sector in Western Australia. The RGP3 scope includes the development of a new pit at the Area C 'E Deposit'and the construction of new crushing and screening facilities at the mine's 'CDeposit'. Port and rail facilities will also be expanded to facilitate this capacityincrease and position the business for further staged growth. The expansion willinclude a new stockyard, upgraded car dumper and ship loading facilities, aswell as additional rolling stock and rail sidings. Due to the nature of the expansion activities, particularly in relation to theberth and car dumper upgrades, some latent capacity will result at the portoperations. This capacity will be taken up as future expansions come on line. President BHP Billiton Iron Ore Graeme Hunt said RGP3 is part of the company'sbroad investment program to meet growing demand for all steel making rawmaterials. "The project builds on our outstanding track record of bringing new productioncapacity on line over the past few years and lays the foundation for furtherexpansions that will drive the future success of our business," he said. "We are currently in the feasibility stage for Rapid Growth Project 4, which isfocussed on expanding the Newman operations, and are studying further growthoptions to ensure we continue meeting customer needs over coming decades." Since 2001 BHP Billiton has increased production at its Western Australian ironore operations from around 68Mtpa to over 100Mtpa in 2005. This has beenachieved through the completion of projects such as Area C and the Products andCapacity Expansion in 2003 and 2004 respectively, the Accelerated Expansion in2004, and more recent projects including RGP1. All of these projects have beencompleted on time and within budget. The RGP2 expansion also remains on schedule and budget with initial productionforecast to commence in the second half of calendar year 2006. Key elements of RGP3 include: Area C • Development of a new pit at 'E Deposit'; • Construction of an overland conveyor from 'E Deposit' to the main processing facilities at 'C Deposit'; • Construction of new crushing and screening facilities at 'C Deposit'; • Second blending yard at 'C Deposit'. Port • Car dumper upgrades at Nelson Point; • Conveyor upgrades at Nelson Point; • 'C Berth' upgrade to take 250,000dwt vessels at Finucane Island; • Increased ship loading speed and flexibility at Finucane Island. Rail • New mainline and spur sidings; • Loop modifications at Area C; • Additional locomotives; • Additional ore wagons. Following completion of RGP3 and the previously announced RGP2, the total systemcapacity of the Western Australian iron ore operations will be 129Mtpa. BHP Billiton's partners in the Mt Newman Joint Venture are ITOCHU Minerals &Energy of Australia and Mitsui-Itochu Iron. Further information on BHP Billiton can be found on our Internet site: http://www.bhpbilliton.com Australia United Kingdom Jane Belcher, Investor Relations Mark Lidiard, Investor & Media Relations Tel: +61 3 9609 3952 Mobile: +61 417 031 653 Tel: +44 20 7802 4156 Mobile: +44 7769 934 942 email: [email protected] email: [email protected] Tania Price, Media Relations Ariane Gentil, Media Relations Tel: +61 3 9609 3815 Mobile: +61 419 152 780 Tel: +44 20 7802 4177 Mobile: +44 78 81 51 8715 email: [email protected] email: [email protected] United States South Africa Tracey Whitehead, Investor & Media Relations Michael Campbell, Investor & Media Relations Tel: US +1 713 599 6100 or UK +44 20 7802 4031 Tel: +27 11 376 3360 Mobile: +27 82 458 2587 Mobile: +44 7917 648 093 email: [email protected]: [email protected] BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209 Registered in Australia Registered in England and Wales Registered Office: 180 Lonsdale Street Neathouse Place Melbourne Victoria 3000 Australia London SW1V 1BH United Kingdom Tel +61 1300 55 4757 Fax +61 3 9609 3015 Tel +44 20 7802 4000 Fax +44 20 7802 4111 A member of the BHP Billiton group which is headquartered in Australia This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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