Port of StocktonCleveland Cascades LtdTelestackFLSmidthStemmMultimodal 2018
  • Docksolid
  • TMS Tanker Conference 2018
  • Vigan Engineering S.A
  • Cimbria Bulk Equipment A/S
  • Multimodal 2018
  • Cleveland Cascades Ltd

BHP approves South Flank project

BHP approves South Flank project

(Posted on 15/06/18)

The BHP Board has approved US$2.9 billion (BHP share; US$3.4 billion 100 per cent) in capital expenditure for the South Flank project in the central Pilbara, Western Australia.

BHP President Operations, Minerals Australia, Mike Henry, said the South Flank project will fully replace production from the 80 Mtpa (100 per cent basis) Yandi mine which is reaching the end of its economic life.  

“South Flank is a capital efficient project which offers attractive returns, and which was approved following a thorough evaluation under BHP’s Capital Allocation Framework,” Mr Henry said. “The project will create around 2,500 construction jobs, more than 600 ongoing operational roles and generate many opportunities for Western Australian suppliers. It will enhance the average quality of BHP’s Western Australia Iron Ore (WAIO) production and will allow us to benefit from price premiums for higher-quality lump and fines products.” 

The South Flank project expands the existing infrastructure at Mining Area C, and involves construction of an 80 Mtpa crushing and screening plant, an overland conveyor system, stockyard and train loading facilities, procurement of new mining fleet and substantial mine development and pre-strip work. 

First ore from South Flank is targeted in the 2021 calendar year, with the project expected to produce ore for more than 25 years.

South Flank iron ore will contribute to an increase in WAIO’s average iron grade from 61 per cent to 62 per cent, and the overall proportion of lump from 25 per cent to approximately 35 per cent. It is expected to have a strip ratio in line with the WAIO average.

In June 2017, BHP approved an initial funding commitment of US$184 million (BHP share), primarily for the expansion of accommodation facilities to support current and future workforce requirements. 

The South Flank project will be the major contributor to a material increase in WAIO Total Marra Mamba Ore Reserves.

BHP has an 85 per cent interest in Mining Area C and the South Flank project, with ITOCHU Minerals and Energy of Australia Pty Ltd and Mitsui Iron Ore Corporation Pty Ltd collectively owning the remaining 15 per cent interest. Overall capital intensity of US$45 per tonne of annual capacity includes initial funding of US$216 million (US$184 million BHP share) announced on 26 June 2017.  Overall South Flank project expenditure fits within Western Australia Iron Ore’s previously indicated average annual sustaining capital expenditure of approximately US$4 per tonne over the next five years, with actual sustaining capital expenditure highly variable in any given year during the development of South Flank.

Latest News

German coal imports decline sharply

(Posted on 19/07/18)

The German Coal Importer Association (Verein der Kohlenimporteure e. V.) have reported that the use... Read more


Australian Premier visits Esperance following job save

(Posted on 19/07/18)

The Mineral Resources' acquisition of Koolyanobbing iron ore mine will allow iron ore exports from... Read more


World’s largest robot delivers for Rio Tinto

(Posted on 19/07/18)

Rio Tinto has achieved a significant milestone with the first delivery of iron ore by an autonomous... Read more


Report outlines U.S. soybean export outlook

(Posted on 04/07/18)

A report from Rabobank released this month summarises the outlook for U.S. soybean exports, which it... Read more


AIIS files lawsuit to challenge Trump’s steel tariffs

(Posted on 04/07/18)

The American Institute for International Steel (AIIS) and two of its member companies, SIM-TEX, LP,... Read more


Aluminium China 2018 showcases Asia’s thriving industry despite US tariffs

(Posted on 04/07/18)

In the face of the US tariff storm, the Aluminium China 2018 exhibition and conference in Shanghai from... Read more


Petra Nova project highlights technical potential

(Posted on 27/06/18)

According to Liam McHugh, World Coal Association Policy Manager, Petra Nova demonstrates technical potential... Read more


Scrap handling growth in Amsterdam

(Posted on 27/06/18)

The export of scrap from the port of Amsterdam is growing steadily. About 600,000 tons of scrap was... Read more


WCA urges climate change action

(Posted on 27/06/18)

The World Cement Association (WCA) has warned of the growing pressures on the global cement industry... Read more


Vale announces the passing of two times president, Eliezer Batista

(Posted on 21/06/18)

With immense sadness, Vale has announced the passing of Eliezer Batista, the first person to hold the... Read more


OvetTMS Awards 2016 winnersTBA - Software Solutions & Services for ports, terminals & warehousesThe Maritime Standards Awards 2018NAVTORBühler GmbH
  • NAVTOR
  • Telestack
  • Stemm
  • Sailors Society

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping