BHP Billiton Iron Ore Expansion Projects, Western Australia

Operators:  BHP Billiton

Location:  Pilbara

Employment:  Exact numbers unknown, but is in the thousands for construction and operational.

Timeframe:  Construction has commenced, start up due in the first half of calendar year 2016.

Status:    BHP produces most of its iron ore through seven mines at three big mining hubs in the central and east Pilbara known as MAC, Newman and Yandi. To expand to 220 million tonnes it will build another, Jimblebar, and to move to 350 million tonnes it will open up four more mines: Jinidi, Marillana 1 and 2 and Southern Flank.  Since our last update, BHP Billiton has also bought out the equipment and operators of its contractor, HWE and moved to an “Owner-Operator” model.

​BHP Billiton announced in February 2012, the approval of US$917 million (BHP Billiton share US$779 million) in pre-commitment funding for the construction of a 100 million tonne per year outer harbour facility associated with its expansion projects.  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 tonnes per year.  The funds approved will enable the Company to progress feasibility studies and the procurement of long lead time items. 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 Harbour Development would include the proposed construction of a four kilometre jetty, a four-berth wharf, 32 kilometres of dredged departure channel and landside infrastructure, including stockyards and a rail spur.

Awarded Contracts and Employment Opportunities include:

• Monadelphous; has secured a significant number of contracts for major works, including structural, mechanical and piping works for the expansion project. In September 2012, Monadelphous was awarded a $75 million construction contract for the Jimblebar iron ore mine.Monadelphous will provide structural, mechanical, and piping works associated with the construction of the stacking, reclaiming, train load out, product sampling, and water infrastructure facilities.  Work is scheduled to begin in October 2012.
• Joint venture partners, RCR Tomlinson and Laing O’Rourke;  will design and construct primary and secondary crushing facilities, including overland conveyors. 
• FAST;  a joint venture between Fluor Australia and SKM will develop and deliver iron ore projects to meet the global market demand forecast for BHP Billiton’s Iron Ore business.
• John Holland Group.
• Macmahon Holdings; awarded in August 2011 the contract for pre-development work adjacent to current operations at BHP Billiton Iron Ore’s Wheelarra Mine to construct haul roads and run of mine.
• United Group Resources; awarded a $A165 million contract for the fabrication and on-site installation of structural steel and mechanical equipment associated with transfer stations, conveyors and shuttles.
• AGC; awarded a $100m contract for the structural, mechanical, piping and heavy haulage at the company’s Yandi operation.  The scope of work includes construction of an Ore Handling Plant, stockpile and conveyor systems; fabrication of 2,000 tonnes of conveyor components; and transportation of 43 structural modules - ranging from 100 to 300 tonnes - from Port Hedland to the Yandi mine site, located 140km northwest of Newman in Western Australia’s Pilbara region.
• RCRTomlinson;  has been awarded a contract to provide power generation works for BHP Billiton Iron Ore's Yarnima Combined Cycle Power Station in Newman, Western Australia.  The scope of works includes the design, manufacture and supply of three Heat Recovery Steam Generators (HRSGs) and associated equipment.    Due for completion in the second quarter of 2013, the contract is valued at approximately $30 million.
• Downer EDI; has been awarded the electrical and instrumentation contracts for BHP's iron ore projects. Dubbed the Newman HV Power System Augmentation project and worth more than $70 million, the contracts will see Downer responsible for both the greenfields and brownfields transmission line and substation works.
• AusGroup; awarded a $48 million contract for the structural, mechanical, and piping works for the inflow circuit of the plant in July 2012.
• UGL;  has won a $99.45 million contract for work at the Jimblebar iron ore mine.  Specifically, UGL will provide the fabrication and installation of equipment associated with coarse ore stockpiles, secondary crushing, scalping and screening, and conveyors and will mobilise operations in July 2012.
• Thiess; awarded the contract to actually mine Jimblebar.