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 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, 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 86% complete.

The project is progressing well and remains on schedule for first production in the 2021 calendar year.

As at the end of March 2020, about 80% of the contracts awarded were under way in Australia, of which 95% is within Western Australia.

Some interstate employees have relocated to Western Australia to help with the project delivery.

Consistent with BHP’s operations, the South Flank project continues to implement increased measures to conduct safe operations in compliance with strict health and travel guidelines put in place to help reduce the spread of Covid-19.

Key Contracts and Suppliers
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.