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BHP approves $4bn South Flank mine

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Yet more good news for the Australin mining industry as BHP approves the South Flank project, a $4bn iron ore mine that will be located in Western Australia’s Pilbara region.

BHP’s South Flank mine will be a replacement for the company’s Yandi mine which is reaching the end of its economic life.
South Flank will replace BHP's Yandi mine which is reaching the end of its economic life.
(Image via BHP Billiton).

The South Flank project will expand the existing infrastructure at BHP’s Mining Area C in Pilbara, and will involve the construction of an 80 Mtpa crushing and screening plant, an overland conveyor system, stockyard and train loading facilities, procurement of new mining fleet and substantial mine development and pre-strip work.

First ore from South Flank is expected to be achieved in 2021, with the project then expected to produce ore for more than 25 years.

The new mine is expected to be a boon for jobs and the wider mining supply chain, with upwards of 2,500 jobs to be created in the construction of South Flank, as outlined by Mike Henry, BHP’s President of Operations, Minerals Australia:

“South Flank is a capital efficient project which offers attractive returns, and which was approved following a thorough evaluation under BHP’s Capital Allocation Framework. The project will create around 2,500 construction jobs, more than 600 ongoing operational roles and generate many opportunities for Western Australian suppliers. It will enhance the average quality of BHP’s Western Australia Iron Ore (WAIO) production and will allow us to benefit from price premiums for higher-quality lump and fines products.”

BHP’s approval of South Flank follows Fortescue giving their approval last month to the development of their £1.3 billion Eliwana project, also in the Pilbara region.

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BHP approves $4bn South Flank mine - Time to read 2 min
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