BHP Billiton
BHP Billiton (ASX: BHP) is a global leader in the resources industry, with a diversified portfolio of natural resources. The company's operations include: iron ore, coking and thermal coal, copper, zinc, oil & gas and diamonds.
BHP Billiton approves US$1.93bln investment in its Western Australia Iron Ore business
Friday, January 29, 2010
BHP Billiton (LSE: BLT; ASX: BHP) has approved a US$1.93 billion capital expenditure programme to further accelerate the growth of its Western Australia Iron Ore business. The investment is part of the company's Rapid Growth Project 6 (RGP6), which is expected to increase installed capacity of the Western Australia Iron Ore assets to 240 million tonnes per annum (mtpa) during calendar year 2013.
"This investment is the continuation of our long-term strategy of adding capacity in our high quality iron ore business to support our confidence in the longer term demand for iron ore globally”, BHP Billiton Iron Ore president Ian Ashby said, “By the time RGP6 is completed, we will have more than tripled installed capacity at our Western Australia Iron Ore operations since we first invested in our accelerated growth program in 2002.”
According to BHP Billiton, the funding will enable the early procurement of long lead time items and the early progression of detailed engineering work. The investment will focus on the expansion of the inner harbour at Port Hedland, progress rail track duplication works and expand the Jimblebar mining operation.
BHP Billiton said the approval for the balance of the RGP6 capital will be considered during the second half of the 2010 calendar year following the completion of the BHP Billiton and Rio Tinto (LSE, ASX: RIO) joint venture transaction. As a result of the agreement between BHP Billiton and Rio Tinto to establish a production joint venture, Rio Tinto has the option to participate in RGP6 by paying its share of invested capital. Rio Tinto’s decision is expected after the JV transaction is completed.
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