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BIL
BIBLT
BIL - BHP Billiton Approves Funding For Further Growth At Western
Australia Iron Ore
BHP Billiton Plc
Share code: BIL
ISIN: GB0000566504
NEWS RELEASE
Date: 29 January 2010
Number
05/10
BHP BILLITON APPROVES FUNDING FOR FURTHER GROWTH AT WESTERN AUSTRALIA IRON ORE
BHP Billiton today announced approval for US$1.93 billion (BHP Billiton share
US$1.73 billion)(1) of capital expenditure to underpin the further accelerated
growth of its Western Australia Iron Ore business. This investment represents
early expenditure for the company`s Rapid Growth Project 6 (RGP6). RGP6 is
expected to increase installed capacity at the company`s Western Australia Iron
Ore assets to 240 million tonnes per annum (mtpa) during calendar year 2013.
The funding will allow early procurement of long lead time items and detailed
engineering to continue the expansion of the inner harbour at Port Hedland,
progress rail track duplication works and expand the Jimblebar mining operation.
BHP Billiton President, Iron Ore, Ian Ashby said "This investment is the
continuation of our long-term strategy of adding capacity in our high quality
iron ore business to support our confidence in the longer term demand for iron
ore globally. By the time RGP6 is completed, we will have more than tripled
installed capacity at our Western Australia Iron Ore operations since we first
invested in our accelerated growth program in 2002. The approval for the balance
of the RGP6 capital will be considered during the second half of the 2010
calendar year".
On 5 June 2009, BHP Billiton and Rio Tinto signed an agreement of core
principles to establish a production joint venture covering the entirety of both
companies` Western Australian iron ore assets. BHP Billiton and Rio Tinto
concluded binding agreements on 5 December 2009 on the proposed JV that cover
all aspects of how the joint venture will operate and be governed. Under the
binding agreements, Rio Tinto will have the option to participate in RGP6 by
paying its share of invested capital; with this decision being made after the
Joint Venture transaction is completed, estimated to occur in the second half of
the 2010 calendar year.
(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 of the RGP6 Project takes into
account the 100% owned BHP Billiton Iron Ore Jimblebar operation.
Further information on BHP Billiton can be found on our Internet site:
www.bhpbilliton.com
Australia United Kingdom & South Africa
Samantha Evans, Media Relations Andre Liebenberg, Investor Relations
Tel: +61 3 9609 2898 Tel: +44 20 7802 4131
Mobile: +61 400 693 915 Mobile: +44 7920 236 974
email: email: Andre.Liebenberg@bhpbilliton.com
Samantha.Evans@bhpbilliton.com
Amanda Buckley, Media Relations Illtud Harri, Media Relations
Tel: +61 3 9609 2209 Tel: +44 20 7802 4195
Mobile: +61 419 801 349 Mobile: +44 7920 237 246
email: email:
Amanda.Buckley@bhpbilliton.com Illtud.Harri@bhpbilliton.com
Kelly Quirke, Media Relations Americas
Tel: +61 3 9609 2896 Scott Espenshade, Investor Relations
Mobile: +61 429 966 312 Tel: +1 713 599 6431
email: Mobile: +1 713 208 8565
Kelly.Quirke@bhpbilliton.com email: Scott.Espenshade@bhpbilliton.com
Leng Lau, Investor Relations Ruban Yogarajah, Media Relations
Tel: +61 3 9609 4202 Tel: US +1 713 966 2907 or UK +44 20 7802
Mobile: +61 403 533 706 4033
email: Leng.Y.Lau@bhpbilliton.com Mobile: UK +44 7827 082 022
email: Ruban.Yogarajah@bhpbilliton.com
BHP Billiton Limited ABN 49 004 BHP Billiton Plc Registration number
028 077 3196209
Registered in Australia Registered in England and Wales
Registered Office: 180 Lonsdale Registered Office: Neathouse Place
Street London SW1V 1BH United Kingdom
Melbourne Victoria 3000 Australia Tel +44 20 7802 4000 Fax +44 20 7802 4111
Tel +61 1300 55 4757 Fax +61 3
9609 3015
Members of the BHP Billiton group which is headquartered in Australia
Date: 29/01/2010 07:40:01 Produced by the JSE SENS Department.
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