BHP has approved a $US900 million ($1.3 billion) development of Ministers North, a high-grade iron ore deposit southeast of its Yandi mine in Western Australia’s Pilbara, with site works to start this month and first ore expected in the 2029 financial year.
“Yandi has been an important part of our WA iron ore operations for more than 30 years,” BHP Western Australia Iron Ore asset president Tim Day said.
“Our investment in Ministers North helps us build on that legacy. We’re making the most of the infrastructure, skills and experience we already have to bring a new orebody into production and keep our high-quality Pilbara iron ore flowing.”
Yandi sits 90 kilometres northwest of Newman and passed a billion tonnes of production in 2017, only the second Western Australian iron ore mine to do so. Its ore is railed to Port Hedland for export.
Ministers North will run as a satellite extension of Yandi, delivering 20 million tonnes per annum (Mtpa) once ramped up. The new pit helps BHP hold its medium-term target of 305Mtpa across the iron ore business.
The build takes in a 13-kilometre haul road and land bridge between the two sites, upgrades to what’s already there, and a new primary and secondary crusher at Yandi.
The approval came as BHP reported a record iron ore year, most of it dug out of the Pilbara.
The $US900 million covers the whole project, a joint venture between BHP and Japanese trading houses Itochu Corporation and Mitsui & Co, with BHP on 85 per cent and the Japanese pair on 8 and 7 per cent.
“This is about maintaining continuity as Yandi matures naturally and backing the future of the Pilbara and our iron ore business.”