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BIL
BIBLT
BHP Billiton - Approves Revised Costs for Ravensthorpe Nickel Project
BHP Billiton Plc
Share code: BIL
ISIN: GB0000566504
Date 30 November 2006
Number 33/06
BHP BILLITON APPROVES REVISED COSTS FOR RAVENSTHORPE NICKEL PROJECT
BHP Billiton announced today the approval of increased capital costs for
the Ravensthorpe Nickel Project to a total budget of US$2.2 billion.
Lower than expected labour productivity and late delivery of some
materials and equipment at Ravensthorpe means that the target date for
first metal ex-Yabulu from Ravensthorpe is now first quarter calendar
year 2008.
President Stainless Steel Materials Jimmy Wilson said while market
conditions had led to the increased capital costs, the project was still
well positioned to deliver positive results.
"At the time the original cost estimate for Ravensthorpe was prepared,
the current tightness and cost escalation for labour and materials,
which are especially severe in Western Australia, were not apparent.
"Production is eagerly sought in a market which requires additional
nickel units to keep pace with continuing strong demand. Ravensthorpe
and the expanded production from Yabulu are well placed to meet part of
this demand," Mr Wilson said.
The design of Ravensthorpe benefits from an extensive understanding of
existing nickel acid leach operations. The design and much of the
equipment and materials have undergone extensive pilot plant testing.
Scale-up factors are conservative by normal industry standards.
"We have done a lot of work to ensure that the plant will operate as
designed, and that we can ramp up production at a rate which will enable
nickel to be delivered to customers as early as possible," Mr Wilson
said.
Construction at Ravensthorpe is now approximately 73 percent complete
with engineering and procurement activities now finalised and offsite
fabrication 97 percent complete. The Yabulu refinery expansion is
approximately 87 percent complete and on schedule for mechanical
completion by the end of calendar year 2006.
Ravensthorpe Nickel is an integrated mine and primary processing
facility now under construction at Ravensthorpe, Western Australia,
located 570 kilometres by road from Perth and 155 kilometres west of
Esperance.
The project involves open pit mining from three adjacent ore bodies, and
a hydrometallurgical process plant to treat both limonite and saprolite
ores to produce up to 50,000 tonnes per annum of contained nickel and
1400 tonnes of contained cobalt in a mixed intermediate product for
further processing at BHP Billiton"s Yabulu nickel refinery in
Queensland, Australia.
Further information on BHP Billiton can be found on our Internet site:
www.bhpbilliton.com
Australia United Kingdom
Samantha Evans, Media Relations Mark Lidiard, Investor & Media
Tel: +61 3 9609 2898 Mobile: Relations
+61 400 693 915 Tel: +44 20 7802 4156 Mobile:
email: +44 7769 934 942
Samantha.Evans@bhpbilliton.com email:
Mark.Lidiard@bhpbilliton.com
Jane Belcher, Investor Relations Illtud Harri, Media Relations
Tel: +61 3 9609 3952 Mobile: Tel: +44 20 7802 4195 Mobile:
+61 417 031 653 +44 7920 237 246
email: email:
Jane.H.Belcher@bhpbilliton.com Illtud.Harri@bhpbilliton.com
United States South Africa
Tracey Whitehead, Investor & Alison Gilbert, Investor
Media Relations Relations
Tel: US +1 713 599 6100 or UK Tel: SA +27 11 376 2121 or UK
+44 20 7802 4031 +44 20 7802 4183
Mobile: +44 7917 648 093 email:
email: Alison.Gilbert@bhpbilliton.com
Tracey.Whitehead@bhpbilliton.com
Date: 30/11/2006 10:02:21 AM Produced by the JSE SENS Department
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