BHP Western Australia Iron Ore will require the development of an additional ore deposit to sustain production as the Yandi mine is exhausted over the next five to ten years.
As a high-grade deposit, which enables the business to utilise existing infrastructure at Mining Area C, South Flank is the preferred long term option to replace this production.. The South Flank deposit is located approximately 130 km by road north-west of the town of Newman, and approximately 8 km to the south of the Companys existing Mining Area C operation.
The proposed project is currently in study phase and is subject to a number of internal and external approvals.
As part of the study, the Company is seeking expressions of interest from suitably qualified contractors to gain an understanding of the capacity and capability of available contractors for the proposed project.
The proposed project will require the establishment of mining operations at South Flank and construction of associated infrastructure with processing capacity up to 80 million tonnes per annum including:
- Primary crushing facilities nominally located to the north of the proposed deposits;
- Run of Mine pads;
- Overland conveyors to Mining Area C;
- Coarse Ore Stockpile and Ore Handling Plant infrastructure at Mining Area C;
- Upgrade to the existing stockyards and outflow facilities;
- Duplication of the existing rail loop and addition of a second Train Loadout;
- Advanced mine de-watering in accordance with the mine plan;
- Expansion of the existing Mulla Mulla Accommodation Village;
- Installation of supporting non-process infrastructure (e.g. power lines, access roads) to support the new mining areas; and
- Expansion of existing non-processing infrastructure and industrial facilities to support production.
Preliminary enabling works commencing in CY2017
Final Investment decision Q1 CY2018
Main construction and commissioning works Q1 CY2018 to Q1 CY2021.
Approximate Project Value (CAPEX):
>$2 billion AUD
Local and indigenous participation:
In line with BHP's commitment to supporting its communities, requirements relating to the engagement of local and Indigenous vendors will be included in the selection criteria.
The proposed South Flank Project is currently in selection phase study and is subject to a number of internal and external approvals. Accordingly, the scope descriptions, timelines and values stated in this project description are indicative only and subject to change.