BHP Billiton announces capacity expansion project
Australian mining giant
BHP Billiton announced today that its board approved an expansion plan called the Rapid Growth Project 3 (RGP3).
RGP3 will increase the annual capacity at
BHP Billiton's Area C
iron ore mine in Western
Australia to 42 million tons from the current 22 million tons. RGP3 aims to meet the growing demand for raw materials used in
steelmaking.
BHP Billiton's board approved a capital expenditure of $1.3 billion to cover the company's 85 percent share in the project. The initial
production is scheduled to begin in the fourth quarter of the 2007 fiscal year.
Under RGP3, a new pit will be developed at the Area C ’E Deposit'. New crushing and screening facilities at the mine's ’C Deposit' will be constructed, and a second blending yard will be built there as well. Port and rail facilities will be expanded to deal with the capacity increase.
Meanwhile, the company is currently carrying out a feasibility study for Rapid Growth Project 4, which will expand the Newman operations.
BHP Billiton increased annual
production at its Western Australian
iron ore operations to over 100 million tons in 2005. Output at those mines was around 68 million tons in 2001.