Go-ahead for expansion of BHP's Yandi iron ore mine (E Pilbara)

6/2/96

Resources Develoment Minister Colin Barnett today gave the green light for BHP Iron Ore to expand its Yandi mine in the East Pilbara.

The decision to proceed with the $107 million project followed a detailed environmental process which was finalised this week.

Mr Barnett said the expansion go-ahead, which represented the second stage of BHP Iron Ore Yandi project at Marillana Creek, was a further signal of buoyant times for the iron ore industry in Western Australia.

"It illustrates the Government's endeavours to promote resource development in the State and also provides further proof of BHP's long-term commitment to expand its iron ore operations in the East Pilbara," he said.

The Minister said that during the past 12 months BHP Iron Ore had committed $1.8 billion-worth of investment on downstream processing projects in the Pilbara.

This included $310 million on the Pilbara Energy Project, $900 million on a hot briquetted iron (HBI/DRI) plant at Port Hedland and $585 million on associated infrastructure including a tunnel beneath Port Hedland harbour.

The Minister said iron ore fines from the Yandi expansion would be exported to meet a growing demand for sinter feed in Asian and other overseas steel mills.

He said he had approved a production limit of 25 million tonnes a year from the expanded Yandi operation which was previously limited to 15 million tonnes per year.

Mr Barnett said BHP intended to duplicate the crushing, screening and loading facilities at the new Yandi operation, as well as build a 10-km rail spur connecting the new mine site.

A workforce of about 350 would peak during a 25-week construction phase for the Yandi 2 development.

Work was due to start within the next few weeks.

The two Yandi mines would eventually have a combined full-time workforce of 150 people.

The Minister said the Yandi expansion was one of a number of new exciting iron ore developments which were recently detailed in the Department of Resources Development's flagship publication, the WA Iron Ore Industry Review, which predicted 1996 would continue to be a record year for iron ore exports.

Media contact: Carolyn Vicars 222 9699