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.