BHP has today achieved first ore
at its US$3.6 billion South Flank mine in the central Pilbara, Western
Australia.
South Flank is an 80 Mtpa
sustaining mine, and will be the most technically advanced high quality
iron ore mine in Western Australia. Together with the existing Mining
Area C, it will form the largest operating iron ore hub in the world –
producing 145 million tonnes of iron ore each year.
BHP President Minerals
Australia, Edgar Basto, said: “South Flank is Australia’s largest new
iron ore mine in over 50 years and is on time and on budget. South
Flank’s high quality ore will increase WAIO’s average iron ore grade
from 61 to 62 per cent, and the overall proportion of lump from 25 to
30-33 per cent.
“The project has created more
than 9000 direct and indirect jobs during construction, and will provide
more than 600 operational roles through its life.
“South Flank’s ore will supply
global steel markets for the next 25 years, helping to build
electricity, transport and urban infrastructure across the globe. And
its high quality ore will have an important role in helping BHP’s
customers lower their greenhouse gas emissions.
“South Flank is on Banjima
country, and this milestone would not have been possible without their
support and collaboration over many years. We are proud of our
longstanding partnership and strong working relationship with the
Banjima people, and we thank them for their vital contribution to this
success.
“First ore from South Flank is
the result of the hard work and ingenuity of thousands of people and
organisations spanning state and federal governments, our suppliers,
customers, and partners in WA and around the world.”
The South Flank project has
expanded the existing infrastructure at Mining Area C, and involved
construction of an 80 Mtpa crushing and screening plant, an overland
conveyor system, stockyard and train loading facilities, procurement of
a new mining fleet and substantial mine development and pre-strip work.
South Flank’s workforce is
diverse and highly skilled, with 40 per cent female and 15 per cent
Indigenous operational staff.
More than A$4.6 billion of works
have been awarded for South Flank with 78 per cent awarded to Australian
businesses, including 41 per cent to Western Australian businesses, and
37 per cent committed in the Pilbara region.
South Flank has a competitive
capital intensity of US$45/t – approximately half of BHP’s last major
iron ore project, Jimblebar.
Premier of Western Australia,
Mark McGowan
“The South Flank project is an
example of my government’s commitment to working with industry to take
advantage of the international market and business development trends to
create Western Australian jobs.
“I congratulate BHP on the first
production of ore and look forward to this project continuing to provide
jobs for Western Australians and delivering considerable economic
benefit for our state.”
Australian Minister for
Resources, Water, and Northern Australia, Keith Pitt
“This is a major project that is
creating thousands of jobs and again shows why the resources sector is
so important to our national economy. Establishing Australia’s biggest
iron ore project in half a century is a significant vote of confidence
in the industry’s future and its long-term benefits to Australia.
“I have just visited the Pilbara
region in WA and took the opportunity to thank the workers, including
those at Jimblebar, who’ve kept our mining industry going through the
coronavirus pandemic and I look forward to returning to see the South
Flank project in operation.” |