|
BHP BILLITON PLC - BHP BILLITON APPROVES EXPANSION OF WESTERN AUSTRALIAN IRON
ORE CAPACITY TO 118 MILLION TONNES PER ANNUM
BHP Billiton Plc
SHARE CODE: BIL
ISIN: GB0000566504
NEWS RELEASE
Date 25 October 2004
BHP BILLITON APPROVES EXPANSION OF WESTERN AUSTRALIAN IRON ORE CAPACITY TO 118
MILLION TONNES PER ANNUM
BHP Billiton today announced the approval of Rapid Growth Project 2 (RGP2), a
$US575 million (*BHP Billiton share US$489 million) project which will expand
the capacity of its Western Australia iron ore operations from 110 million
tonnes per annum (Mtpa) to 118 Mtpa during the second half of calendar year
2006.
RGP2 will include the development of a new brockman resource, Orebody 18, with
an initial capacity of 8Mtpa, together with plant modifications at the existing
Orebody 25 mine, and additional rail and port capacity.
Group President Carbon Steel Materials, Bob Kirkby, said: `This latest expansion
is a key component of BHP Billiton`s plans to incrementally expand iron ore
infrastructure and systems capacity in line with market demand. It continues
BHP Billiton`s commitment to ensuring that we can supply the significant
increase in demand for steelmaking raw materials from our customers.`
`In October last year, we opened the Area C mine and complemented this
development with the completion of the port and railroad Products and Capacity
Expansion Project in January 2004. By June 2004, a further expansion to increase
installed operating capacity to 100Mtpa was completed and commissioning is now
underway on the Rapid Growth Project 1 to increase capacity to 110Mtpa,` Mr
Kirkby said.
`A feasibility study is also currently underway to determine the optimum iron
ore production, railing, processing and shipping infrastructure for tonnages of
at least 145Mtpa. This study is due for completion in early 2005.`
Orebody 18 contains total resources of 178Mt; comprising a measured resource of
136Mt, indicated resource of 38Mt and inferred resource of 4Mt.
(The information is based on information compiled by P. Schultz, MAusIMM who is
a full time employee of BHP Billiton Iron Ore Pty Ltd. Mr Schultz has
sufficient experience, which is relevant to the style and type of deposit and to
the activity that is undertaken to qualify as a Competent Person defined in the
1999 edition of the `Australasian Code for Reporting of Minerals Resources and
Ore Reserve`. The Competent Person consents to the inclusion in this release of
the matters based on their information in the form and context in which they
appear.)
* $US86 million will be provided by BHP Billiton Joint Venture Partners ITOCHU
Minerals & Energy of Australia and Mitsui Iron Ore Corporation.Background notes:
BHP Billiton`s iron ore operations are mostly located in the Pilbara region of
Western Australia. The permanent workforce, employed either directly or through
contract mining arrangements, is approximately 5,000 of which about 75% reside
in the Pilbara towns of Newman and Port Hedland.
In the Year Ending June 2004, BHP Billiton produced 88.9 million tonnes (100%
terms) of iron ore from the six mines located in the Pilbara - Mt Whaleback and
nearby Satellite Orebodies 23, 25, 29 and 30, Jimblebar, Yandi, Area C and
Yarrie.
Processing and shipping facilities are located at Nelson Point and Finucane
Island, Port Hedland. These facilities are connected to the six mines by almost
1,000 kilometres of railway track.
Key elements of the RGP2 project are:
* Mining
* Development of the Orebody 18 brockman resource, near Newman, to add to the
blend of ores from the Mt Whaleback, Satellite Orebodies and Jimblebar
mines.
* Initial production at Orebody 18 will be 8 Mtpa, although capacity of 12
Mtpa will be installed.
* Modifications to the Orebody 25 mine to produce additional brockman lump
and fines products.
* Port
* The construction of a new car dumping facility and ancillary works.
* The car dumper will have an ultimate capacity of 40 Mtpa, however this
will be limited to 8Mtpa initially. Future expansion projects will realise
the additional capacity in the car dumper as further downstream capacity
is installed.
* This additional car dumping capacity will allow upgrades to existing
dumpers to be undertaken in readiness for future market growth.
* Rail
* The procurement of additional railway rolling stock.
* Additional railway to support the new mines and car dumper.
Further information on BHP Billiton can be found on our Internet site:
http://www.bhpbilliton.com
Australia United Kingdom
Jane Belcher, Investor Mark Lidiard, Investor &
Relations Media Relations
Tel: +61 3 9609 3952 Mobile: Tel: +44 20 7802 4156
+61 417 031 653 email:
email: Mark.Lidiard@bhpbilliton.com
Jane.H.Belcher@bhpbilliton.co
m
Tania Price, Media Relations Ariane Gentil, Media
Tel: +61 3 9609 3815 Mobile: Relations
+61 419 152 780 Tel: +44 20 7802 4177
email: Mobile: +44 78 81 51 8715
Tania.Price@bhpbilliton.com email:
Ariane.Gentil@bhpbilliton.co
United States m
Francis McAllister, Investor
Relations South Africa
Tel: +1 713 961 8625 Mobile: Michael Campbell, Investor &
+1 713 480 3699 Media Relations
email: Tel: +27 11 376 3360
Francis.R.McAllister@bhpbilli Mobile: +27 82 458 2587
ton.com email:
Michael.J.Campbell@bhpbillit
on.com
Date: 25/10/2004 08:11:52 AM
Produced by the JSE SENS Department |
|
