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BIBLT
BHP BILLITON ACCELERATES EXPANSION OF WESTERN AUSTRALIAN IRON ORE BUSINESS
Share code: BIL
ISIN: GB0000566504
NEWS RELEASE
BHP Billiton today announced that it would be accelerating the development of
its Western Australian iron ore expansion projects, to ensure a system capacity
of 100 million tonnes per annum (Mtpa) by the end of the second quarter of
CY2004.
President Carbon Steel Materials Bob Kirkby said the accelerated development of
Area C and the Products and Capacity Expansion (PACE) would provide a low cost,
low risk means of maximising returns from the current strong iron ore market
conditions.
"The accelerated expansion will also provide system capacity to ensure we can
meet the ongoing growth in demand for both the new Marra Mamba ores and the
existing Brockman and Yandi ores in the Asian region, particularly China," he
said.
Under the original program, announced on 3 April 2002, the capacity of Area C
was to be incrementally expanded to 15 Mtpa by 2011. This capacity will now be
available by the first quarter of CY2004.
Similarly, the original schedule for PACE provided the foundations for expansion
to 100 Mtpa by 2011. This capacity will also be available at the port
by the first quarter of CY2004, without additional expenditure.
Capacity on the Newman to Port Hedland rail line will be expanded to 100 Mtpa by
the end of the second quarter of CY2004, with the addition of three extra
sidings and 240 new ore cars - aligning all three elements of the system.
Capital expenditure for the additional sidings and ore cars, increased ore
processing capability at Area C, and accelerated pre-stripping at Mt Whaleback
is expected to be in the order of US$50 million (BHP Billiton share US$42.5
million).
"These acceleration initiatives support key elements of BHP Billiton"s iron ore
growth strategy including the introduction of new high `Value-in-Use" products,
such as MAC(TM), to meet the needs of high technology customers," Mr Kirkby
said.
In addition, BHP Billiton recently approved the installation of a five kilometre
overland conveyor and additional ore handling facilities at the Yandi mine. The
new facilities will raise Yandi"s capacity by three million tonnes, to 42 Mtpa,
early in the first quarter of CY2004 and will also improve operating
efficiencies. Capital expenditure for this high value brownfields expansion is
expected to be in the order of US$27 million (BHP Billiton share US$23 million).
"We are also undertaking feasibility studies for further expansions of the
Western Australian iron ore business, should the market warrant, to 120 Mtpa.
This will ensure we are well placed to maintain our position as one of the
world"s leading suppliers of iron ore and will include a wide range of high
quality Hematite, Pisolite and Marra Mamba ores," Mr Kirkby said.
Area C is located 37 kilometres from BHP Billiton"s existing Yandi mine in the
north west of Western Australia and is the largest undeveloped Marra Mamba
resource in the Pilbara.
The first production cargoes are scheduled for loading in September, and the
project will be officially opened on 30 October 2003. Customer feedback from
trials of bulk sample product has been positive, with strong interest also
expressed from China.
PACE construction continues on schedule and detailed engineering has been
completed. The project is within budget and is on track to commission ahead of
schedule in the first quarter of CY2004.
Further information on BHP Billiton can be found on our Internet site:
http://www.bhpbilliton.com
Australia United Kingdom
Andrew Nairn, Investor Relations Mark Lidiard, Investor & Media Relations
Tel: +61 3 9609 3952 Mobile: +61 Tel: +44 20 7802 4156
408 313 259 email: Mark.Lidiard@bhpbilliton.com
email:
Andrew.W.Nairn@bhpbilliton.com
Tania Price, Media Relations Ariane Gentil, Media Relations
Tel: +61 3 9609 3815 Mobile: +61 Tel: +44 20 7802 4177 Mobile: +44 78 81 51
419 152 780 8715
email: email: Ariane.Gentil@bhpbilliton.com
Tania.Price@bhpbilliton.com
South Africa
Michael Buzzard, Media Relations Michael Campbell, Investor & Media
Tel: +61 3 9609 2046 Mobile: +61 Relations
417 914 103 Tel: +27 11 376 3360 Mobile: +27 82 458
email: 2587
Michael.Buzzard@bhpbilliton.com email: Michael.J.Campbell@bhpbilliton.com
United States
Francis McAllister, Investor
Relations
Tel: +1 713 961 8625 Mobile: +1
713 480 3699
email:
Francis.R.McAllister@bhpbilliton.
com
Date: 25/07/2003 07:37:55 AM Produced by the JSE SENS Department
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