Expansion of WA Iron Ore
BHP Billiton Limited
25 July 2003
BHP Billiton Limited is issuing this announcement to fulfil disclosure
obligations arising from its secondary listing on the London Stock Exchange.
The text of this release is identical to that issued by BHP Billiton Plc
earlier.
Date 25 July 2003
Number 26/03
BHP BILLITON ACCELERATES EXPANSION OF WESTERN AUSTRALIAN IRON ORE BUSINESS
BHP Billiton today announced that it would be accelerating the development of
its Western Australian iron ore expansion projects, to ensure a system capacity
of 100 million tonnes per annum (Mtpa) by the end of the second quarter of
CY2004.
President Carbon Steel Materials Bob Kirkby said the accelerated development of
Area C and the Products and Capacity Expansion (PACE) would provide a low cost,
low risk means of maximising returns from the current strong iron ore market
conditions.
'The accelerated expansion will also provide system capacity to ensure we can
meet the ongoing growth in demand for both the new Marra Mamba ores and the
existing Brockman and Yandi ores in the Asian region, particularly China,' he
said.
Under the original program, announced on 3 April 2002, the capacity of Area C
was to be incrementally expanded to 15 Mtpa by 2011. This capacity will now be
available by the first quarter of CY2004.
Similarly, the original schedule for PACE provided the foundations for expansion
to 100 Mtpa by 2011. This capacity will also be available at the port by the
first quarter of CY2004, without additional expenditure.
Capacity on the Newman to Port Hedland rail line will be expanded to 100 Mtpa by
the end of the second quarter of CY2004, with the addition of three extra
sidings and 240 new ore cars - aligning all three elements of the system.
Capital expenditure for the additional sidings and ore cars, increased ore
processing capability at Area C, and accelerated pre-stripping at Mt Whaleback
is expected to be in the order of US$50 million (BHP Billiton share US$42.5
million).
'These acceleration initiatives support key elements of BHP Billiton's iron ore
growth strategy including the introduction of new high 'Value-in-Use' products,
such as MAC(TM) , to meet the needs of high technology customers,' Mr Kirkby
said.
In addition, BHP Billiton recently approved the installation of a five kilometre
overland conveyor and additional ore handling facilities at the Yandi mine. The
new facilities will raise Yandi's capacity by three million tonnes, to 42 Mtpa,
early in the first quarter of CY2004 and will also improve operating
efficiencies. Capital expenditure for this high value brownfields expansion is
expected to be in the order of US$27 million (BHP Billiton share US$23 million).
'We are also undertaking feasibility studies for further expansions of the
Western Australian iron ore business, should the market warrant, to 120 Mtpa.
This will ensure we are well placed to maintain our position as one of the
world's leading suppliers of iron ore and will include a wide range of high
quality Hematite, Pisolite and Marra Mamba ores,' Mr Kirkby said.
Area C is located 37 kilometres from BHP Billiton's existing Yandi mine in the
north west of Western Australia and is the largest undeveloped Marra Mamba
resource in the Pilbara.
The first production cargoes are scheduled for loading in September, and the
project will be officially opened on 30 October 2003. Customer feedback from
trials of bulk sample product has been positive, with strong interest also
expressed from China.
PACE construction continues on schedule and detailed engineering has been
completed. The project is within budget and is on track to commission ahead of
schedule in the first quarter of CY2004.
Further information on BHP Billiton can be found on our Internet site: http://
www.bhpbilliton.com
Australia United Kingdom
Andrew Nairn, Investor Relations Mark Lidiard, Investor & Media Relations
Tel: +61 3 9609 3952 Mobile: +61 408 313 259 Tel: +44 20 7802 4156
email: Andrew.W.Nairn@bhpbilliton.com email: Mark.Lidiard@bhpbilliton.com
Tania Price, Media Relations Ariane Gentil, Media Relations
Tel: +61 3 9609 3815 Mobile: +61 419 152 780 Tel: +44 20 7802 4177 Mobile: +44 78 81 51 8715
email: Tania.Price@bhpbilliton.com email: Ariane.Gentil@bhpbilliton.com
Michael Buzzard, Media Relations South Africa
Tel: +61 3 9609 2046 Mobile: +61 417 914 103 Michael Campbell, Investor & Media Relations
email: Michael.Buzzard@bhpbilliton.com Tel: +27 11 376 3360 Mobile: +27 82 458 2587
email: Michael.J.Campbell@bhpbilliton.com
United States
Francis McAllister, Investor Relations
Tel: +1 713 961 8625 Mobile: +1 713 480 3699
email: Francis.R.McAllister@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209
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