Official opening of the BHP Titanium Minerals Beenup project

12/3/97

A multi-million dollar dredge mining and processing operation in Western Australia's far South-West has been officially opened, cementing Australia's role as a leading producer of titanium minerals.

The $230 million BHP Titanium Minerals Beenup project, north-east of Augusta, will mine and process one of the world's major deposits of mineral sands. The operation is expected to boost export income by $60 million annually, State revenue of $7 million, and has brought with it significant benefits to the South-West and Western Australia.

Officially opening the project today, Resources Development Minister Colin Barnett said that Beenup was an example of BHP Titanium Minerals' commitment to the State, ongoing since 1988 when significant reserves of ilmenite and zircon were discovered.

"The Beenup project is an important boost to Australia's reputation as a reliable, long-term supplier of titanium minerals," Mr Barnett said.

"WA is one of the great mineral provinces of the world and the titanium minerals mined and processed here are essential to maintaining our share of the worldwide market."

Mr Barnett said the Beenup project was an outstanding example of BHP's commitment to WA.

"The project has created 120 permanent jobs, the majority of these filled by people from the Augusta and Margaret River area," he said.

"I am also delighted at the amount of WA and Australian goods and services used in the project. Under the Government's local content policy, major project co-ordinators are encouraged to seek tenders from local companies for work on projects.

"In this case, the local content of the project is around 95 per cent, giving Australian and WA industry work to the tune of $190 million."

The company intends to mine at an annual rate of approximately 600,000 tonnes per annum of ilmenite and 20,000 tonnes of zircon giving the mine a life in excess of 50 years. About half of the mine's output will be supplied to titanium slag producer Tinfos of Norway.

The mine will use what is believed to be the world's biggest mineral sand dredge, longer than a soccer pitch and weighing more than a navy frigate. In operation it will mine ore from up to 45 metres below the surface at a rate of 3,500 tonnes per hour.

The dredge was built at Kwinana by United Construction, dismantled and transported to the mine site where it was re-assembled in an excavated mine pit which was then flooded to enable the dredge to be floated out.

Media contact: Justine Whittome (09) 222 9699