PERTH (miningweekly.com) – Mining major BHP has produced first ore at its $3.6-billion South Flank mine, in the Pilbara.

“South Flank is Australia’s largest new iron-ore mine in over 50 years and is on time and on budget. South Flank’s high quality ore will increase Western Australia Iron Ore’s average iron-ore grade from 61% to 62%, and the overall proportion of lump from 25% to between 30% to 33%,” said BHP’s president for Minerals Australia, Edgar Basto.

South Flank is an 80-million-tonne-a-year operation, and will be the most technically advanced high quality iron-ore mine in Western Australia. Together with the existing Mining Area C, it will form the largest operating iron-ore hub in the world, producing 145-million tonnes of iron-ore each year. 

The project has expanded the existing infrastructure at Mining Area C, and involved construction of an 80-t/y crushing and screening plant, an overland conveyor system, stockyard and train loading facilities, procurement of a new mining fleet and substantial mine development and pre-strip work. 

The mine has a competitive capital intensity of $45/t, approximately half of BHP’s last major iron-ore project, Jimblebar.

“The project has created more than 9 000 direct and indirect jobs during construction, and will provide more than 600 operational roles through its life.

“South Flank’s ore will supply global steel markets for the next 25 years, helping to build electricity, transport and urban infrastructure across the globe. And its high quality ore will have an important role in helping BHP’s customers lower their greenhouse gas emissions,” said Basto on Thursday.

Western Australian Premiere Mark McGowan has welcomed first production at the mine, saying it was an example of the government’s commitment to working with industry to take advantage of the international market and business development trends to create Western Australian jobs and support local business.

"I've seen this project through from its inception, from turning the sod on site with BHP and Banjima Traditional Owners in 2018 to its completion and now first production of ore. 

"I congratulate BHP on reaching this important milestone and look forward to this project continuing to provide jobs for Western Australians and delivering considerable economic benefit for our state.

"It proves Western Australia is a secure and attractive place to invest,” the Premier said.

The Western Australian Chamber of Minerals and Energy (CME) has also congratulated the miner, with CEO Paul Everingham saying the South Flank operation provided a glimpse of the future of mining and insights into current best practice in the sector.

“South Flank showcases many aspects of best practice, which not only BHP but CME member companies around the state strive to achieve on a daily basis. The diversity of the South Flank workforce, with 40% female and 15% Indigenous operational staff, reflects the changing nature of modern mining workforces.

“It’s also extremely pleasing to see the positive relationship BHP has forged with the Banjima people and the more than A$1.5-billion in works at South Flank that have been awarded to Pilbara businesses.”

Everingham said South Flank also highlighted the sector’s overriding commitment to working safer, cleaner and smarter.

“The modular construction methods used at South Flank reduced exposure to some of the higher risk construction activities that would traditionally have been involved in a major project like this,” he said.

“South Flank has also been designed from the start with a focus on technology and the use of autonomous mining equipment, including haul trucks. And the high-quality ore it will produce will provide for a reduction in emissions in the steelmaking processes undertaken by BHP customers.”