On March 24, Australian mining giant BHP Billiton announced investments of $7.4 billion in its iron ore business in Western Australia to expand annual capacity to over 220 million mt. BHP Billiton will contribute US$6.6 billion of this figure, with the rest to be provided by its partners.
Accordingly, US$3.4 billion, with BHP Billiton's share at US$3.3 billion, will be invested to develop the Jimblebar mine and rail links, and to buy mining equipment and rolling stock, delivering an initial capacity of 35 million mt per year, with embedded options for expansion to 55 million mt per year with incremental capital investment.
In addition, BHP Billiton also announced the investment of US$5 billion in three coking coal projects in the Bowen Basin region of Queensland, Australia, with BHP contributing US$2.5 billion of the total. This is expected to add 4.9 million mt of annual mining capacity through development in the company's Daunia operation and a new mine in Broadmeadow. Port capacity at the nearby Hay Point Coal Terminal is also to be increased.
Furthermore, BHP Billiton has also approved expenditure of US$400 million on a thermal coal project in Hunter Valley, New South Wales, with the annual output at Mt. Arthur foreseen to increase by 4 million mt to 24 million mt.
BHP Billiton's partners in its Pilbara iron ore operations in Western Australia are: Itochu Minerals & Energy of Australia Pty Ltd, Mitsui-Itochu Iron Pty Ltd and Mitsui Iron Ore Corporation Pty Ltd. BHP Billiton's share of investment takes into account the 100-percent owned BHP Billiton Iron Ore Jimblebar operation.