30th Nov 2006 07:00
BHP Billiton PLC30 November 2006 30 November 2006Number 33/06 BHP BILLITON APPROVES REVISED COSTS FOR RAVENSTHORPE NICKEL PROJECT BHP Billiton announced today the approval of increased capital costs for theRavensthorpe Nickel Project to a total budget of US$2.2 billion. Lower than expected labour productivity and late delivery of some materials andequipment at Ravensthorpe means that the target date for first metal ex-Yabulufrom Ravensthorpe is now first quarter calendar year 2008. President Stainless Steel Materials Jimmy Wilson said while market conditionshad led to the increased capital costs, the project was still well positioned todeliver positive results. "At the time the original cost estimate for Ravensthorpe was prepared, thecurrent tightness and cost escalation for labour and materials, which areespecially severe in Western Australia, were not apparent. "Production is eagerly sought in a market which requires additional nickel unitsto keep pace with continuing strong demand. Ravensthorpe and the expandedproduction from Yabulu are well placed to meet part of this demand," Mr Wilsonsaid. The design of Ravensthorpe benefits from an extensive understanding of existingnickel acid leach operations. The design and much of the equipment and materialshave undergone extensive pilot plant testing. Scale-up factors are conservativeby normal industry standards. "We have done a lot of work to ensure that the plant will operate as designed,and that we can ramp up production at a rate which will enable nickel to bedelivered to customers as early as possible," Mr Wilson said. Construction at Ravensthorpe is now approximately 73 percent complete withengineering and procurement activities now finalised and offsite fabrication 97percent complete. The Yabulu refinery expansion is approximately 87 percentcomplete and on schedule for mechanical completion by the end of calendar year2006. Ravensthorpe Nickel is an integrated mine and primary processing facility nowunder construction at Ravensthorpe, Western Australia, located 570 kilometres byroad from Perth and 155 kilometres west of Esperance. The project involves open pit mining from three adjacent ore bodies, and ahydrometallurgical process plant to treat both limonite and saprolite ores toproduce up to 50,000 tonnes per annum of contained nickel and 1400 tonnes ofcontained cobalt in a mixed intermediate product for further processing at BHPBilliton's Yabulu nickel refinery in Queensland, Australia. Further information on BHP Billiton can be found on our Internet site:www.bhpbilliton.com Australia United KingdomSamantha Evans, Media Relations Mark Lidiard, Investor & Media RelationsTel: +61 3 9609 2898 Mobile: +61 400 693 915 Tel: +44 20 7802 4156 Mobile: +44 7769 934 942email: [email protected] email: [email protected] Belcher, Investor Relations Illtud Harri, Media RelationsTel: +61 3 9609 3952 Mobile: +61 417 031 653 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 email: [email protected]: [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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