Name and Location
Western Australia iron-ore (WAIO) operations growth project, Pilbara, Australia.

Client
BHP Billiton.

Project Description
The project will continue production growth at BHP Billiton’s WAIO operations and deliver an integrated operation, with a capacity of more than 220-million tons a year on a 100% basis.

The investment includes:
• The development of the Jimblebar mine and rail links, as well as the procurement of mining equipment and rolling stock that will deliver 35-million tonnes a year, with embedded options for expansion to 55-million tonnes a year for incremental capital investment.
• The further development of Port Hedland, including two additional berths and shiploaders, a car dumper and the connection of conveyor routes and associated rail works and rolling stock.
• Port blending facilities and rail yards to enable ore blending, the expansion of resource life and the preparation for future growth of the business beyond the inner harbour.

Value
The project is estimated at $6.54-billion, including $3.64-billion for the development of the Jimblebar mine; $1.9-billion for Port Hedland and $1-billion for port blending facilities and rail yards.

Duration
First production from the Jimblebar mine was expected in early2014; however, first production is currently expected in the final quarter of this year.

Latest Developments
The Jimblebar mine expansion, which will increase supply chain capacity to 220-million tonnes a year, is expected to achieve first production in the December 2013 quarter, ahead of schedule. The project is 89% complete.

First production from Port Hedland was achieved in the last quarter of 2012. The project is 92% complete.

The WAIO port blending and rail yard facilities are on schedule and within budget based on the revised scope. The overall project is 86% complete.

Key Contracts and Suppliers
VDM Construction (ammonium nitrate storage facility).

On Budget and on Time?
The project remains well positioned to deliver 220-million tonnes a year of supply chain capacity ahead of schedule and within budget. However, while the Jimblebar mine expansion project is within budget in local currency the capital cost in US dollars is expected to be 10% or $340-million higher than the original budget. This increase has been more than offset by a change in scope and a $400-million reduction in the budget for the WAIO port blending and rail yard facilities project.

Contact Details for Project Information
BHP Billiton, investor relations, James Agar, tel +61 3 9609 2222 or email James.Agar@bhpbilliton.com.
VDM Construction, tel +61 8 9241 1800, fax +61 8 9241 1999 or email enquiries@vdmgroup.com.au.