BHP Billiton plc To Invest In Construction Of New Harbor Facility

BHP Billiton plc announced the approval of US$917 million (BHP Billiton share US$779 million) in pre-commitment funding for the construction of a 100 million tons per year outer harbor facility associated with its Western Australia Iron Ore operations. The project, which is expected to be reviewed for full approval in the fourth quarter of calendar year 2012, has an embedded option to expand by a further 100 million tons per year. It will also allow for dredging to begin, subject to the necessary regulatory approvals. In parallel with this work, engineering studies are underway to match mine and rail expansions to the expanded port capacity. The first phase of the Outer Harbor Development would include the proposed construction of a four kilometer jetty, a four-berth wharf, 32 kilometers of dredged departure channel and landside infrastructure, including stockyards and a rail spur. Start-up would be in the first half of calendar year 2016.