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BIL
BIBLT
BIL - BHP Billiton Plc - Approves funding for accelerated growth at Western
Australia Iron Ore (WAIO)
BHP Billiton Plc
Share code: BIL
ISIN: GB0000566504
4 February 2008
Number 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 share
US$930M)(1) of capital expenditure to underpin accelerated growth of our WAIO
business. This amount represents pre approval expenditure for Rapid Growth
Project 5 (RGP5). RGP5 is expected to increase WAIO`s installed capacity to more
than 200 million tonnes per annum (Mtpa) during calendar year 2011.
This pre-approval funding will be used to commence duplication of the railway
track between the Yandi mine and Port Hedland and begin the expansion of the
inner harbour at Port Hedland. Construction of this second railway is expected
to begin in May 2008, subject to various government approvals. The early
funding will also allow early procurement of long lead items and detailed
engineering studies to expand capacity at Yandi and Area C.
President BHP Billiton Iron Ore, Ian Ashby said "The core of the Pilbara is
progressively moving to the Yandi/Area C mining hubs. Double tracking the rail
to this area will create the rail capacity to support our planned expansion to
more than 300 Mtpa.
"In parallel with this project, we are advancing our studies on the outer
harbour development at Port Hedland. Combined with the RGP5 rail work, the port
expansion would complete the major infrastructure requirements to support an
operation of over 350 Mtpa," he said.
In the last quarter BHP Billiton delivered RGP3 which expanded the capacity at
Area C by 20 million tonnes per annum and RGP4 is on track to increase installed
capacity to 155Mtpa in calendar year 2010.
The approval for the balance of the RGP5 capital is expected during the second
half of calendar 2008. The early investment in RGP5 is expected to result in
incremental production, beyond RGP4`s capacity, before RGP5 is completed in
2011.
(1) BHP Billiton`s partners in its Pilbara iron ore operations are: Itochu
Minerals & Energy of Australia Pty Ltd, Mitsui-Itochu Iron Pty Ltd and Mitsui
Iron 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
Samantha Evans, Media Relations
Tel: +61 3 9609 2898 Mobile: +61 400 693 915
email: Samantha.Evans@bhpbilliton.com
Don Carroll, Investor Relations
Tel: +61 3 9609 2686 Mobile: +61 417 591 938
email: Don.A.Carroll@bhpbilliton.com
United Kingdom
Andre Liebenberg, Investor Relations
Tel: +44 20 7802 4131 Mobile: +44 7920 236 974
email: Andre.Liebenberg@bhpbilliton.com
Illtud Harri, Media Relations
Tel: +44 20 7802 4195 Mobile: +44 7920 237 246
email: Illtud.Harri@bhpbilliton.com
United States
Tracey Whitehead, Investor & Media Relations
Tel: US +1 713 599 6100 or UK +44 20 7802 4031
Mobile: +44 7917 648 093
email: Tracey.Whitehead@bhpbilliton.com
South Africa
Alison Gilbert, Investor Relations
Tel: SA +27 11 376 2121 or UK +44 20 7802 4183
Mobile: +44 7769 936 227
email: Alison.Gilbert@bhpbilliton.com
Date: 04/02/2008 07:06:02 Produced by the JSE SENS Department.
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