Name of the Project
South Flank iron-ore sustaining mine project.
Location
Central Pilbara, Western Australia.
Project Owner/s
BHP (85%), with ITOCHU Minerals and Energy, of Australia, and Mitsui Iron Ore Corporation collectively owning the remaining 15% interest.
Project Description
The project will leverage and expand the existing Mining Area C hub, which is BHP’s preferred option to replace production from the 80-million-tonne-a-year (100% basis) Yandi mine when it reaches the end of its economic life in the early to mid-2020s.
The operation will increase the production levels from Mining Area C from the current 65-million tonnes a year to 145-million tonnes a year.
The South Flank project includes the construction of an 80-million-tonne-a-year crushing and screening plant, an overland conveyor system, stockyard and train-loading facilities, the procurement of a new mining fleet, as well as substantial mine development and prestrip work.
South Flank will be a higher-grade (62%) and lower-phosphorus operation than Yandi (58%), and use BHP’s infrastructure at Mining Area C.
The project is expected to produce ore for more than 25 years.
Potential Job Creation
The project will create an estimated 2 500 construction jobs and more than 600 ongoing operational roles, and generate many opportunities for Western Australian suppliers.
Net Present Value/Internal Rate of Return
Not stated.
Capital Expenditure
The project is expected to cost $3.06-billion.
Planned Start/End Date
First ore from South Flank is targeted in 2021.
Latest Developments
The project is on schedule and budget.
The overall project is 95% complete. Commissioning activities for South Flank are expected to start in the June 2021 quarter.
Key Contracts, Suppliers and Consultants
NRW Holdings (bulk earth and concrete works) and Fluor (engineering, procurement and construction management services).
Contact Details for Project Information
BHP (Australia), tel +61 3 9415 4020.