BHP Billiton has announced approval of USD 917 million (BHP Billiton share USD 779 million) in pre commitment funding for the construction of a 100 million tonne per year outer harbour facility associated with its Western Australia Iron Ore operations.

The project, which is expected to be reviewed for full approval in the fourth quarter of calendar year 2012, has an embedded option to expand by a further 100 million tonnes per year.

The funds approved will enable the company to progress feasibility studies and the procurement of long lead time items. It will also allow for dredging to begin, subject to the necessary regulatory approvals. In parallel with this work, engineering studies are underway to match mine and rail expansions to the expanded port capacity.

The first phase of the Outer Harbour Development would include the proposed construction of a 4 kilometre jetty, a four berth wharf, 32 kilometres of dredged departure channel and landside infrastructure, including stockyards and a rail spur. Start up would be in the first half
of calendar year 2016.

Mr Ian Ashby President Iron Ore of BHP Billiton said “This investment is an important first step in providing the infrastructure to allow us to fully develop our world class resource base in the Pilbara. The development of the outer harbour is pivotal for our longer term growth objectives and this initial funding is rapidly turning those plans into a reality.”

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.