BHP shuts small iron-ore mine, advances Pilbara in-house strategy
JOHANNESBURG (miningweekly.com) – Diversified mining major BHP Billiton has suspended production at its Yarrie operation in Western Australia’s Pilbara, as an “additional productivity measure” in its iron-ore business, BHP Billiton iron-ore president Jimmy Wilson announced on Tuesday.
Wilson said in a statement that the group would redeploy the Yarrie employees to its Jimblebar operation and to other areas of the business where possible.
The Jimblebar operation would manage the Orebody 18 site, which is the last of BHP Billiton’s Pilbara operations to transition to owner-operator. The company said Orebody 18, which mining service provider Macmahon has managed since January 2007, would become a BHP Billiton operation by the end of the financial year in June.
The mining group began the move to owner-operator in 2011 with the acquisition of HWE Mining subsidiaries and followed with the transition of the Yarrie operation to owner-operator in 2013. Wilson said the move was consistent with the company’s decision to move the Western Australia iron-ore business to a 100% owner-operated model.
“We are committed to the safe, effective and efficient transfer of the Orebody 18 operation to BHP Billiton and we will work closely with Macmahon to ensure this happens,” he said.
“Excess trucks and shovels made available due to improved productivity at our other mining operations will be used at Orebody 18, resulting in no additional truck and shovel purchases required to operate the site.”
BHP Billiton is targeting productivity gains of $5.5-billion by the end of 2014. Last week, the company reported that its productivity-led volume and cost efficiencies had already saved it $4.9-billion.
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