JOHANNESBURG (miningweekly.com) – Diversified giant BHP Billiton on Friday confirmed that it had initiated plans to develop a second uranium mine in Australia.

BHP spokesperson Illtud Harri told Mining Weekly Online that the miner currently planned to start project construction on the Yeelirrie uranium project, in Western Australia, by 2011, with initial production from the mine starting in 2014.

This timeline was subject to government and board approvals.

BHP’s Uranium Australia division has now referred its Yeelirrie project proposal to the Western Australian Environmental Protection Authority (EPA) and the Federal Department of the Environment, Water, Heritage and the Arts.

“The referral is an important step in the progress of the project and the company's preparation of an environmental impact statement (EIS). Consultation with external stakeholders, including Aboriginal groups and nongovernmental organisations, has started as part of the EIS work and will continue throughout the course of the project,” said Harri.

The Yeelirrie project has recently completed an identification, or concept study and a selection, or prefeasibility study was now under way.

“We will continue to assess and review the project in line with our disciplined approach to investment in growth projects,” Harri concluded.

BHP Billiton also operats the Olympic Dam uranium project, in South Australia. The Olympic Dam is a multimineral ore body, which hosts the world's fourth-largest remaining copper deposit, fifth-largest gold deposit and the largest uranium deposit. It also contains significant quantities of silver.

Olympic Dam is Australia's largest underground mine.

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