20th Oct 2005 17:00
BHP Billiton PLC20 October 2005 NEWS RELEASE Release Time IMMEDIATE Date 20 October 2005 Number 41/05 BHP BILLITON APPROVES SAMARCO EXPANSION BHP Billiton today announced approval of the Samarco Third Pellet Plant projectin Brazil. The project will increase annual iron ore pellet production capacityby 7.6 million tonnes to 21.6 million tonnes per annum (100% basis), at a costof US$590 million (BHP Billiton share). First pellet production is expected inthe first half of calendar year 2008. BHP Billiton's President Iron Ore, Graeme Hunt, said: "This expansion isconsistent with our strategy of maintaining our position in growing iron oremarkets. Samarco is a low cost supplier of seaborne pellets with a strongcustomer base. Investment in a third pellet plant will consolidate its strongmarket position and will enhance BHP Billiton's exposure to the important ironore pellet market." Construction on the Third Pellet Plant project will commence immediately andwill include: • Additional mining capacity and a new concentrator at the Germano mine site; • A second slurry pipeline of approximately 400 kms in length from Germano to Ponta Ubu; and • A third pellet plant, additional stockyard capacity and enhanced ship loading capacity at the Ponta Ubu site. BHP Billiton has a 50% interest in Samarco, with the remaining 50% being held byCompanhia Vale do Rio Doce (CVRD). Further information on BHP Billiton can be found on our Internet site: http://www.bhpbilliton.com Australia United KingdomJane Belcher, Investor Relations Mark Lidiard, Investor & Media RelationsTel: +61 3 9609 3952 Mobile: +61 417 031 653 Tel: +44 20 7802 4156 Mobile: +44 7769 934 942email: [email protected] email: [email protected] Tania Price, Media Relations Ariane Gentil, Media RelationsTel: +61 3 9609 3815 Mobile: +61 419 152 780 Tel: +44 20 7802 4177 Mobile: +44 7881 518 715email: [email protected] email: [email protected] United States South AfricaTracey Whitehead, Investor & Media Relations Michael Campbell, Investor & Media RelationsTel: +1 713 599 6100 or +44 20 7802 4031 Tel: +27 11 376 3360 Mobile: +27 82 458 2587Mobile: +44 7917 648 093 email: [email protected]: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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