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BHP Group Limited — Capital/Financing Update 2008
Feb 3, 2008
14787_rns_2008-02-03_4d3bc1e2-3105-4b47-94c2-5286451bee4a.pdf
Capital/Financing Update
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NEWS RELEASE
Release Time IMMEDIATE Date 4 February 2008 Number 05/08
BHP BILLITON APPROVES FUNDING FOR ACCELERATED GROWTH AT WESTERN AUSTRALIA IRON ORE (WAIO)
BHP Billiton today announced approval for US$1.094 billion (BHP Billiton share US$930M)[1] of capital expenditure to underpin accelerated growth of our WAIO business. This amount represents pre approval expenditure for Rapid Growth Project 5 (RGP5). RGP5 is expected to increase WAIO’s installed capacity to more than 200 million tonnes per annum (Mtpa) during calendar year 2011.
This pre-approval funding will be used to commence duplication of the railway track between the Yandi mine and Port Hedland and begin the expansion of the inner harbour at Port Hedland. Construction of this second railway is expected to begin in May 2008, subject to various government approvals. The early funding will also allow early procurement of long lead items and detailed engineering studies to expand capacity at Yandi and Area C.
President BHP Billiton Iron Ore, Ian Ashby said “The core of the Pilbara is progressively moving to the Yandi/Area C mining hubs. Double tracking the rail to this area will create the rail capacity to support our planned expansion to more than 300 Mtpa.
“In parallel with this project, we are advancing our studies on the outer harbour development at Port Hedland. Combined with the RGP5 rail work, the port expansion would complete the major infrastructure requirements to support an operation of over 350 Mtpa,” he said.
In the last quarter BHP Billiton delivered RGP3 which expanded the capacity at Area C by 20 million tonnes per annum and RGP4 is on track to increase installed capacity to 155Mtpa in calendar year 2010.
The approval for the balance of the RGP5 capital is expected during the second half of calendar 2008. The early investment in RGP5 is expected to result in incremental production, beyond RGP4’s capacity, before RGP5 is completed in 2011.
1 BHP Billiton’s partners in its Pilbara 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 share is 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 BHP Billiton information can be found on our Internet site: http://www.bhpbilliton.com
Australia
Samantha Evans, Media Relations Tel: +61 3 9609 2898 Mobile: +61 400 693 915 email: [email protected]
Don Carroll, Investor Relations Tel: +61 3 9609 2686 Mobile: +61 417 591 938 email: [email protected]
United States
Tracey Whitehead, Investor & Media Relations Tel: US +1 713 599 6100 or UK +44 20 7802 4031 Mobile: +44 7917 648 093 email: [email protected]
United Kingdom
Andre Liebenberg, Investor & Media 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]
South Africa
Alison Gilbert, Investor Relations Tel: SA +27 11 376 2121 or UK +44 20 7802 4183 Mobile: +44 7769 936 227 Email: [email protected]