Name of the Project
South Flank iron-ore sustaining mine project.
Location
Central Pilbara, Western Australia.
Project Owner/s
BHP (85%), with ITOCHU Minerals and Energy, of Australia, and Mitsui Iron Ore Corporation collectively owning the remaining 15% interest.
Project Description
The project will leverage and expand the existing Mining Area C hub, which is BHP’s preferred option to replace production from the 80-million-tonne-a-year (100% basis) Yandi mine when it reaches the end of its economic life in the early to mid-2020s.
The operation will increase the production levels from Mining Area C from the current 65-million tonnes a year to 145-million tonnes a year.
The South Flank project includes the construction of an 80-million-tonne-a-year crushing and screening plant, an overland conveyor system, stockyard and train-loading facilities, the procurement of a new mining fleet, as well as substantial mine development and prestrip work.
South Flank will be a higher-grade (62%) and lower-phosphorus operation than Yandi (58%), and use BHP’s infrastructure at Mining Area C.
The project is expected to produce ore for more than 25 years.
Potential Job Creation
The project will create an estimated 2 500 construction jobs and more than 600 ongoing operational roles, and generate many opportunities for Western Australian suppliers.
Net Present Value/Internal Rate of Return
Not stated.
Capital Expenditure
The project is expected to cost $3.06-billion.
Planned Start/End Date
First ore from South Flank is targeted in 2021.
Latest Developments
Construction of the South Flank mine is about 90% complete and is progressing well, and is on schedule for first production in mid-2021.
Key Contracts, Suppliers and Consultants
NRW Holdings (bulk earth and concrete works) and Fluor (engineering, procurement and construction management services).
Contact Details for Project Information
BHP (Australia), tel +61 3 9415 4020.
