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Kallanish Kallanish

Knowledge matters Knowledge matters

June, 19th 2018

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JUN 14
14:05

BHPB is all in on South Flank

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BHP Billiton says it will invest $2.9 billion in its South Flank iron ore project, adding that it will completely replace volumes from its ageing Yandi complex. The project can move ahead after being voted though by the group's board on Thursday, Kallanish notes.

The investment includes construction of a new 80 million tonnes/year crushing and screening plant, as well as train loading facilities, a conveyor system and a stockyard. The mine is expected to operate for some 25 years starting in 2021. The project will increase the average quality of BHPB ores and benefit from quality premiums, BHPB says.

The miner has also said it expects the project to have a capital cost of $30-40/tonne. The full investment cost of the mine is expected to be $3.4 billion but BHPB’s share will be $2.9 billion. In addition to BHPB’s 85% share of South Flank, the remainder is held by ITOCHU Minerals and Energy of Australia and Mitsui Iron Ore Corporation.

The Miner has been trying to expand output to 290m t/y through investment in its existing mines and infrastructure.