On January 29, Australian miner BHP Billiton announced approval for US$1.93 billion of capital expenditure to push the accelerated growth of its Western Australia iron ore business. BHP Billiton's share in the expenditure is US$1.73 billion, while the rest will be financed by the other small partners in the mentioned operations.
A company press release said that this investment represents early expenditure for the company's Rapid Growth Project 6 (RGP6). RGP6 is expected to increase installed capacity at the company's Western Australia iron ore assets to 240 million mt per annum during 2013.
The funding will allow early procurement of long lead time items and detailed engineering to continue the expansion of the inner harbour at Port Hedland, progress rail track duplication works and expand the Jimblebar mining operation.
Under the terms of a binding joint venture agreement between BHP Billiton and Rio Tinto inked on December 5, 2009, Rio Tinto will have the option to participate in RGP6 by paying its share of invested capital which is estimated to occur in the second half of the 2010.