Photo by: Reuters
PERTH (miningweekly.com) – Mining major BHP has turned the first sod at its $3.4-billion South Flank project, in the Pilbara.
The South Flank operation will leverage and expand on the existing Mining Area C hub, and is BHP's preferred option to replace the 80-million-tonne-a-year Yandi mine, which will reach the end of its mine life in early- to mid-2020.
First ore from the South Flank operation is being targeted for 2021, and the project ramp-up will coincide with the ramp-down of the Yandi operation.
Western Australian Premier Mark McGowan said on Wednesday that development of the South Flank mine in the Pilbara is expected to create more than 3 000 Western Australian jobs.
“This project is a positive injection into Western Australia in terms of improving business confidence and benefiting the state's economy.
“BHP's decision, with its joint venture partners, to go ahead with the South Flank project, is testimony that Western Australia is a secure and attractive place to invest.”
BHP’s share of capital expenditure is set to be $2.9-billion, with the company holding an 85% interest in South Flank.