The Western Australian Premier has just ‘turned the sod’ on BHP’s $4.8 billion South Flank Project in the central Pilbara, earlier this morning.
The large-scale operation is predicted to create thousands of jobs for Western Australians over the course of construction. 2,500 direct and indirect jobs will be formed during peak construction, with approximately 600 new ongoing operational roles.
The South Flank project will form the single largest annual production Iron Ore mine that BHP has ever developed. South Flank has been predicted to produce approximately 80 million tonnes per annum (Mtpa) Iron Ore, and will fully replace production from the Yandi mine.
“This project is a positive injection into Western Australia in terms of improving business confidence and benefiting the State’s economy,” announced Premier Mark McGowan on the site earlier today. “BHP’s decision, with its joint venture partners, to go ahead with the South Flank Project is testimony that Western Australia is a secure and attractive place to invest.”
Earlier this month, BHP’s President of Operations (Minerals Australia), Mike Henry, stated that the South Flank mine is forecast to “enhance the average quality of BHP’s Western Australia Iron Ore (WAIO) production” and will allow BHP to “benefit from price premiums for higher-quality lump and fines products” as well. In terms of construction, the South Flank project will expand the existing infrastructure of the Yandi mine, construct a new 80 Mtpa crushing and screening plant and overland conveyor system, build stockyard and train loading facilities, procure a new mining fleet and substantial mine development along with associated pre-strip work.
The first ore from the South Flank mine is targeted in the 2021 calendar year, with the project expected to produce ore for more than 25 years. At the event this morning, the Premier also shared that the government will continue to work on more local content and job creation with BHP in the future.
More information on the project can be found here.