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South Flank iron-ore sustaining mine project, Australia

4th December 2020

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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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
Construction of the South Flank mine is about 84% complete.

First production from the operation is still targeted for mid-2021; however, ramp-up to nameplate capacity will likely be done over "several years", owing to the size and complexity of the operation.

BHP will work to bring the South Flank operation to nameplate capacity over several years, with the ramp-up of operations to coincide with the transition of the Yandi operation.


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.

 

Edited by Creamer Media Reporter

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