Western Australia a global leader with new Pilbara Iron Ore Project

3/4/02
Western Australia's domination of the iron ore export market was reinforced today with the announcement of a $1.2billion joint venture by BHP Billiton and its partner, Korea's Pohang Iron and Steel Co Ltd (POSCO) in the Pilbara, Premier Geoff Gallop said.
"The commitment of BHPB and POSCO to develop Mining Area C and expand its Yandi operations is a vote of confidence in the State," Dr Gallop said.
"The project will be a major plus for the Pilbara region, the State and the nation.
"The project will create jobs for a workforce of 500 during the construction phase and 150 permanent jobs once the project has been commissioned, with a number of employees sourced from the local area.
"Traditional landowners will also be given opportunities to be involved in the project and to share in the benefits of the development."
The Premier made his comments following formal BHP Billiton Board approval of the Mining Area C and Yandi projects in the Pilbara and the signing of a joint venture agreement between BHP Billiton and POSCO in Perth this morning.
"This is a major iron ore development for the State and the Pilbara and could boost WA's iron ore exports by around 10 per cent to between 165 and 177 million tonnes by 2005," Dr Gallop said.
"It will also help Australia achieve a forecast growth of $5.5billion or 12 per cent in iron ore exports this financial year.
"This joint venture represents an important strategic shift in a new growth phase in the development of the WA iron ore industry - one most welcomed by the State Government."
The Premier said the decision by BHP Billiton and its Korean joint venture partner would position the developers to meet a forecast growth in the Asian market over the next five years of almost 16 per cent.
State Development Minister Clive Brown said that Australia's close proximity to the Asian region, together with its reputation for reliable supply and competitive cost structure, had been pivotal in BHP Billiton and POSCO deciding to go ahead with these projects.
"The standard necessary infrastructure will be developed at the mine site and will include ore processing, blending and train loading facilities, an accommodation village and airstrip to cater for the workforce," Mr Brown said.
"A 38km railway spur to link the Area C deposit to the existing railhead at Yandi will also have to be constructed.
"The State Government is very pleased to see this joint venture come to fruition."
Mining Area C is located 100km north-west of Newman in the Central Hamersley Ranges and is the last of the areas covered under the Mount Goldsworthy Agreement Act.
Production is expected to be at the rate of five million tonnes a year building up to 15 million tonnes annually.
Premier's Office - 9222 9475
Minister Brown's Office - 9222 9699