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South Flank iron-ore sustaining mine project, Australia

22nd January 2021

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 90% complete and is progressing well, and is on schedule for first production in  mid-2021.

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.

 

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Edited by Creamer Media Reporter

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