Name of the Project
South Flank iron-ore sustaining mine project.

Location
Central Pilbara, Western Australia.

Client
BHP, with ITOCHU Minerals and Energy of Australia and Mitsui Iron Ore Corporation collectively owning the remaining 15% interest.

Project Description
The project will leverage and expand the existing Mining Area C hub, which is BHP’s preferred option to replace production from the 80-million-tonne-a-year (100% basis) Yandi mine when it reaches the end of its economic life in the early to mid-2020s.
 
The South Flank project includes the construction of an 80-million-tonne-a-year crushing and screening plant, an overland conveyor system, stockyard and trainloading facilities, procurement of a new mining fleet, as well as substantial mine development and prestrip work.

South Flank will be a higher-grade (62%) and lower-phosphorus operation than Yandi (58%), and use BHP’s infrastructure at Mining Area C.

The project is expected to produce ore for more than 25 years.

Potential Job Creation
The project will create an estimated 2 500 construction jobs, more than 600 ongoing operational roles and generate many opportunities for Western Australian suppliers.

Net Present Value/Internal Rate of Return
Not stated.

Value
The project is expected to cost $3.4-billion.

BHP’s share of capital expenditure is set to be $2.9-billion, with the company holding an 85% interest in South Flank.

Duration
First ore from South Flank is targeted in 2021.

Latest Developments
The first sod has been turned at the South Flank project.

Mining services provider NRW Holdings has been awarded a A$176-million contract by BHP for bulk earth and concrete works at the South Flank project.

Works to be undertaken by NRW include bulk earthworks and concrete for the overland conveyors and primary crushers, together with ancillary works pertaining to nonprocess infrastructure.

Bulk earthworks also include access tracks, clearing, pads and diversion drains. Concrete works and associated detailed earthworks include placement of about 14 000 m³ of concrete.

The contract is expected to run for 15 months, starting on site in September 2018.

At peak, more than 350 workers will be required on site. Plant and equipment required will comprise a fleet, sourced in house, together with a range of hired equipment. 

Key Contracts and Suppliers
NRW Holdings ( bulk earth and concrete works).

On Budget and on Time?
Not stated.

Contact Details for Project Information
BHP (Australia), tel +61 3 9415 4020.