The board of mining giant BHP has approved the $4.49 billion development of its South Flank project in Western Australia’s Pilbara region, with a targeted 80 million tonnes of annual production largely expected to replace output from the aging Yandi mine.
BHP minerals Australia president Mike Henry said the massive spend will provide around 2,500 construction jobs, and more than 600 ongoing operational roles.
“South Flank is a capital efficient project which offers attractive returns, and which was approved following a thorough evaluation,” Henry said on June 14.
South Flank will extend BHP’s existing infrastructure at its Mining Area C site.
The project will construct an 80 million tonne per annum crushing and screening plant, an overland conveyor system, and stockyard and train loading facilities.
The spend also includes procurement of new mining fleet, and substantial mine development and pre-strip work.
Product from South Flank will increase BHP’s Pilbara operation’s average iron grade from 61% to 62%, and will boost the overall proportion of lump from 25% to around 35%.
“[The project] 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,” Henry said.
WA Premier Mark McGowan welcomed the announcement by BHP, saying the additional construction jobs would help boost the local economy.
“The investment is welcome news for Western Australia, and yet another sign that the economy is turning the corner and jobs are being created for Western Australians,” the premier said.
Hi,
Not sure where this Location is in Western Australia off Hand. I do Give BHP credit for going the S G Route.
as it allows for the Interchange of Rolling Stock and Motive Power.This saves on Costs and other Expenses.