BHP Billiton Approves Initial Funding for Proposed Iron-Ore Project
June 25 2017 - 7:59PM
Dow Jones News
By Robb M. Stewart
MELBOURNE, Australia--BHP Billiton Ltd. (BHP.AU) has approved
US$184 million in initial funding for a project that would help it
maintain iron-ore production in Western Australia when its Yandi
mine reaches the end of its economic life in the early-to-mid
2020s.
Funding for the South Flank project in the central Pilbara
region will be used mainly for the expansion of accommodation
facilities to support the mining company's workforce, generating
several hundred construction jobs, BHP said Monday.
BHP's board is expected to consider approval for the project,
which would expand an existing mining hub to replace production
from the 80 million metric tons a year Yandi mine, in mid-2018 and
first ore would be targeted in 2021 in order to ramp up to coincide
with a slowdown in output at Yandi.
The South Flank project is a compelling option to replace Yandi
production and offers attractive returns, said Mike Henry,
president of BHP's Australian minerals operations.
BHP estimated the capital cost for the project would be in a
range of US$30 to US$40 a ton.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
June 25, 2017 20:44 ET (00:44 GMT)
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