Major construction activities are now underway on the $4.88 billion South Flank iron ore project in Western Australia, a month after BHP announced that it has invested approximately $3.9 billion towards its development.
The Western Australian Government has signed off on the project under the State Agreement, which enables for major work to begin on the South Flank project - located 120 kilometres north west of Newman.
The multi-billion dollar project will involve the construction of an 80Mtpa crushing and screening plant, an overland conveyor system, stockyard and loading facilities as well as the sourcing of new mining fleet, substantial mine development and pre-strip works.
The South Flank mine will be replacing production from the Yandi mine, which is nearing the end of its economic life.
The development is projected to create thousands of direct and indirect jobs - around 2,500 jobs during construction and up to 600 ongoing positions once the mine is operational.
The State Government will continue working closely with BHP to ensure that opportunities are maximised for local content and local businesses.
“This project is a positive injection into Western Australia in terms of improving confidence and benefiting the State’s economy.
“BHP’s decision, with its joint venture partners, to go ahead with the South Flank Project is testimony that Western Australia is a secure and attractive place to invest,” Premier Mark McGowan said.
South Flank is expected to have a mine life of approximately 25 years. BHP is aiming to begin production at the mine in 2021.
Currently, there have been two contracts awarded for works at the mine. In June of this year, CPB Contractors was awarded a $260 million construction contract that will get the company to undertake works in and around the existing rail loop, including earthworks and concrete works.
On the other hand, NRW was awarded a 15-month contract valued at $176 million in earlier in July 2018 for the delivery of bulk earthworks and concrete works for the overland conveyor system as well as ancillary works to non-process infrastructure at the mine.
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Source: Government of Western Australia