BHP Billiton's facilities at Port Hedland. BHP has approved a project to develop the outer harbour at the congested iron ore port. Source: The Australian
BHP Billiton has approved initial expenditure of $US917 million ($854m) on one of its four "mega" development projects that have a combined development cost of $US120 billion, transforming the group's production profile in the process.
The latest commitment -- BHP's share is $US779m, with Japanese partners Itochu, Mitsubishi and Mitsui picking up the rest -- is for early-stage work on the development of a 100-million-tonne-a-year outer harbour at the congested Port Hedland iron ore export port in Western Australia.
Full approval for the development co mes with what BHP describes as an embedded option for another additional 100 million tonnes in annual capacity is expected in the December quarter this year.
A decision by BHP to proceed with a full-blown $US21bn development on the outer harbour is likely to follow on from a staged $US30bn expansion of the proposed but not yet sanctioned Olympic Dam copper/uranium/gold mine in South Australia.
The Australian
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