BHP to go ahead with $3bn iron ore mine in Australia’s Pilbara
South Flank will produce ore from 2021, and will have a life of about 25 years
Sydney — Mining giant BHP on Friday approved a new US$2.9bn mine in resource-rich northwestern Australia, as the country’s top iron ore producers race to meet Chinese demand for higher-quality metals. China — the planet’s largest commodities consumer — has been seeking cleaner, higher-grade raw materials such as iron ore as it cracks down on pollution and inefficiency in the steel-making industry. The new South Flank project in the central Pilbara will increase BHP’s average iron grade from 61% to 62% and eventually replace production from its Yandi mine, which is reaching the end of its life. "The project … will enhance the average quality of BHP’s Western Australia Iron Ore production and will allow us to benefit from price premiums for higher-quality lump and fines products," said BHP’s Australia minerals president, Mike Henry. South Flank will start producing iron ore from 2021, with the mine expected to last for more than 25 years, the Anglo-Australian firm said. Overall the So...
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