BHP Billiton Again Expanding Its Australian Iron Ore Production


Following board approval in late March 2007, BHP Billiton is proceeding with development of Rapid Growth Project 4 (RGP4) at its Western Australian iron ore operations. The project includes development of a new crushing and screening plant and construction and upgrades of stockyards, car dumping, train loading, and port facilities. BHP Billiton’s share of capital expenditures budgeted for the project is $1.85 billion.

When complete, RGP4 will lift production at BHP Billiton’s Western Australian iron ore operations to 155 million mt/y. Initial production from the project is planned to begin during the first half of 2010.

Key elements of RGP4 include construction of crushing and screening facilities and construction of a new car dumper at Mt. Whaleback; construction of a new ore processing plant at Jimblebar; installation of ore handling plant upgrades at Yandi and of a car dumper upgrade at Nelson Point; construction of a second stockpile row in the East Yard and of new offices, a warehouse, and workshops at Finucane Island; general infrastructure upgrades to reduce dust emissions; purchase of additional locomotives and ore cars; and construction of additional mainline rail sidings.

BHP Billiton currently is working to complete its Rapid Growth Project 3 (RGP3), which will increase its Western Australian iron ore capacity to 129 million mt/y by the end of 2007. At that time, a series of sequential expansion projects will have added 60,000 mt/y of capacity to BHP Billiton’s Western Australian iron ore operations over a period of four years. Major elements of RGP3 have included development of a new pit at the Area C mine’s ‘E Deposit’ and construction of new crushing and screening facilities at the mine’s ‘C Deposit.’

BHP Billiton’s partners in its Western Australian iron ore operations are Itochu Minerals & Energy of Australia, Mitsui- Itochu Iron, and Mitsui Iron Ore Corp. The company is currently evaluating a range of options to expand capacity beyond RGP4.