BHP investing for iron ore growth

BHP has released details of new measures to debottleneck its Pilbara port and rail operations and boost its mine efficiency as a step toward annual iron ore production of 305 million tonnes.

Asset president WA iron ore Brandon Craig said the changes it was making would boost the capacity of its Pilbara operations by 3.5mtpa.

BHP produced a record 285mt from its Pilbara operations in the year to June 2023 and Mr Craig said the group was looking at initiatives to lift production to over 305mtpa over the medium-term.

“To achieve production levels greater than 305mtpa, we need to invest to debottleneck both port and rail infrastructure,” he told the Pilbara Summit in Karratha today.

“We expect that getting there will require more substantial investment in our mines, and would require an additional car dumper, outflow routes and yard expansions.”

Mr Craig said BHP had made some progress at Port Hedland with construction of a new bucket wheel reclaimer almost complete.

Additional upgrades to its stacker, and upgrades to inflow and outflow conveyors were also underway, with the work due to be completed early next year.

This project generated about 600 construction jobs.

“While we look to expand capacity at the port, we must ensure we have the iron ore ready to feed it,” he said.

“One way we are looking to achieve this is through building efficiency across our rail network via Remote-Control Unloading.”

Mr Craig said this project leveraged previous investments in on-board locomotive and train control systems, designed to increase safety and enable a seamless handover to and from the car dumpers to reduce rake changeover time, thereby increasing car dumper utilisation at the port.

“Once completed, it’s expected the project will provide an incremental uplift of 3.5mtpa to the business,” he said.

Meanwhile, BHP has released a report showing its economic contribution across Australia totalled $60 billion last financial year, through wages, dividends, supplier payments, taxes, royalties, and community investments.

In Western Australia, its contribution included $3.1 billion towards royalties and other payments to governments.

BHP made $10.8 billion in supplier payments, including $550 million with local suppliers and $287 million with Indigenous suppliers.

Its social investment in WA totalled $45 million.