Name of the Project
Southern Flank iron-ore sustaining mine project.
Location
Central Pilbara, Western Australia.
Client
BHP.
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.
South Flank will be a higher-grade (62%), lower-phosphorus operation than Yandi (58%), and use BHP’s infrastructure at Mining Area C.
Jobs to Be Created
Full development of South Flank will create several thousand jobs during construction.
Net Present Value/Internal Rate of Return
Not stated.
Value
The project is expected to cost between $2.4-billion and $3.2-billion.
Duration
The project is expected to be submitted for board approval in the mid-2018 calendar year, with first ore targeted in the 2021 calendar year and ramp-up timed to coincide with the ramp-down of Yandi.
Latest Developments
Western Australia’s Environmental Protection Authority (EPA) has recommended BHP’s proposal to expand its Mining Area C iron-ore operations for environmental approval.
However, the EPA has said that the expansion should be allowed to proceed only with strict conditions and offsets aimed at protecting the local Ghost Bat population and ensuring that the expansion’s water management does not impact on the Weeli Wolli Spring and Coondewanna Flats.
The miner will also be required to report on greenhouse-gas emissions and the continued implementation of a cultural heritage management plan to minimise the impacts on sites of Aboriginal significance.
To expand iron-ore operations, BHP intends clearing 16 257 ha of vegetation for an opencut mine, associated mining infrastructure, an overland conveyor, accommodation villages and the construction and operation of a rail spur.
The EPA has recommended that BHP make a contribution to State government’s Pilbara Environmental Offset Fund for the residual impacts on Ghost Bat habitat and the clearing of native vegetation.
The EPA’s report to the Environment Minister is now open for a public appeal period until December 22.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Not stated.
Contact Details for Project Information
BHP (Australia), tel +61 3 9415 4020.