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BHP Group Limited — Capital/Financing Update 2008
Nov 24, 2008
14787_rns_2008-11-24_3019df17-a219-4959-a056-97d9196ce437.pdf
Capital/Financing Update
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NEWS RELEASE
Release Time IMMEDIATE Date 25 November 2008 Number 39/08
BHP BILLITON APPROVES MAJOR CAPACITY EXPANSION AT WESTERN AUSTRALIA IRON ORE
BHP Billiton today announced approval of the Rapid Growth Project 5 (RGP5) with a total capital investment of US$4.8 billion (BHP Billiton share). This includes previously approved capital of US$930 million.
RGP5 will increase installed capacity across our Western Australia Iron Ore operations by 50 million tonnes to 205 million tonnes per annum* (100 per cent basis). RGP5 is expected to deliver first production in the second half of the 2011 calendar year.
The majority of production growth will come from the Yandi and Mining Area C operations. RGP5 will also deliver significant infrastructure upgrades including additional shipping berths at the Port Hedland inner harbour (Finucane Island), substantial double tracking of the company’s rail system and additional crushing, screening and stockpiling facilities at Yandi.
BHP Billiton Chief Executive of Ferrous and Coal, Marcus Randolph, said that “while there is substantial uncertainty in the short term outlook, this investment decision highlights BHP Billiton’s confidence that the long term outlook remains positive. The expansion also underscores our belief that high-quality West Australian iron ore with close proximity to China and the Asian markets, is an important source of supply. With our strong balance sheet, we are well positioned to invest in hiqh-quality and low-risk projects such as RGP5”.
BHP Billiton’s partners in the Western Australia Iron Ore operations are Itochu Minerals & Energy of Australia Pty Ltd, Mitsui-Itochu Iron Pty Ltd and Mitsui Iron Ore Corporation Pty Ltd.
*BHP Billiton attributable share is approximately 85%.
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209 Registered in Australia Registered in England and Wales Registered Office: 180 Lonsdale Street Neathouse Place Melbourne Victoria 3000 Australia London SW1V 1BH United Kingdom Tel +61 1300 55 4757 Fax +61 3 9609 3015 Tel +44 20 7802 4000 Fax +44 20 7802 4111
A member of the BHP Billiton group which is headquartered in Australia
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Further information on BHP Billiton can be found on our Internet site: www.bhpbilliton.com
Australia
Samantha Evans, Media Relations Tel: +61 3 9609 2898 Mobile: +61 400 693 915 email: [email protected]
Peter Ogden, Media Relations Tel: +61 3 9609 2812 Mobile: +61 428 599 190 Email: [email protected]
Leng Lau, Investor Relations Tel: +61 3 9609 4202 Mobile: +61 403 533 706 email: [email protected]
United Kingdom & South Africa
Andre Liebenberg, Investor Relations Tel: +44 20 7802 4131 Mobile: +44 7920 236 974 email: [email protected]
Illtud Harri, Media Relations Tel: +44 20 7802 4195 Mobile: +44 7920 237 246 email: [email protected]
United States
Scott Espenshade, Investor Relations Tel: +1 713 599 6431 Mobile: +1 713 208 8565 email: [email protected]
Ruban Yogarajah, Media Relations Tel: US +1 713 966 2907 or UK +44 20 7802 4033 Mobile: UK +44 7827 082 022 email: [email protected]