Mining giant BHP Billiton today outlined a major expansion of its Pilbara iron ore resource and provided further details of its expansion plans, as it continued price negotiations with its steel mill customers.
Mining giant BHP Billiton today outlined a major expansion of its Pilbara iron ore resource and provided further details of its expansion plans, as it continued price negotiations with its steel mill customers.
BHP and fellow miner Rio Tinto have been major drivers of WA's resources bom and that is set to continue, as they both pursue rapid expansion of their Pilbara operations.
In a briefing today, Melbourne-based BHP said it is currently producing iron ore at the rate of 129 million tonnes per annum, plans to lift that to 240mtpa in 2012 and is studying potential expansion to 350 mtpa.
This would require development of major new port facilities at Port Hedland.
Not to be outdone, Rio Tinto is planning to lift its Pilbara iron ore output to 320 million tonnes a year by 2012 and 420mtpa.
BHP said today it has upgraded its Pilbara iron ore resource base by 46 per cent, and its ore reserves by 23 per cent.
The WA iron ore operation mineral resource has been increased by 3.7 billion wet metric tonnes to 11.7 billion tonnes.
The iron ore reserve has been increased by 571 million wet tonnes to three billion tonnes.
BHP Billiton's attributable share of the WA mineral resource is 10.3 billion tonnes and of the ore reserve 2.6 billion tonnes.
BHP Billiton said the increase in ore reserves includes 180 million tonnes of Brockman ore at Packsaddle, 41 million tonnes of Brockman ore at Newman, 172 million tonnes of Brockman ore at Jimblebar and 178 million tonnes of Channel Iron Deposit ore at Yandi.
The upgrade came as the company hosted a briefing this afternoon on its steelmaking materials business.
BHP Billiton chief executive of ferrous and coal Marcus Randolph said he does not see any end to the current resources boom.
"I don't believe it is going to slowdown soon," Mr Randolph told journalists during a teleconference.
"The "essential building ingredient for cities is steel."
BHP Billiton chief executive ferrous and coal, Marcus Randolph, has today confirmed that the company has not yet settled on iron ore prices with major customers.
Mr Randolph, based in London, made the confirmation in a conference call to reporters this afternoon.
"BHP Billiton has not settled (its contracts)," he said.
Rival Rio Tinto Ltd late yesterday reached an agreement with Baosteel, China's largest steelmaker, for an 79.88 per cent rise in the price of iron ore fines a 96.50 per cent increase in the price of iron ore lump.
Mr Randolph said Rio Tinto's price settlement reflected "progress".
But he said it did not cover the freight differential being sought by the Pilbara miners.
"If it intended to cover the freight differential, it didn't do it," he said.
He also said the company had not yet settled talks on prices rises for its iron ore contracts for this year.
