BHP Billiton has begun the process of securing environmental approval for a push to take its Pilbara iron ore output to 350 million tonnes a year, even though the miner's board is yet to be convinced such an expansion is viable.

A giant investment program to take BHP's Pilbara capacity to 240 million tonnes per annum is under way and the miner is hopeful of reaching the target by the middle of 2014. BHP is operating at a rate of 150 million tonnes per annum now.

But any expansion above that, which will require the construction of an outer harbour at Port Hedland, remains in limbo because of BHP's bearish outlook for global economic growth.

BHP was supposed to sanction the outer harbour development, at an estimated cost of USD 20 billion, by the end of this year. But chief executive Marius Kloppers and chairman Jac Nasser have since steered clear of the year-end target, and Mr Kloppers has instead hinted at a gradual development.

Analysts have suggested the outer harbour could be developed in increments of 50 million tonnes per annum, but even then the first sign-off is not expected until the middle of next year.

Source - The west

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