CAPIAL COSTS: MAJOR IRON-ORE EXPANSION PROJECTS IN WESTERN AUSTRALIA

摘要

In October 2005, BHP Billiton and Rio Tinto responded to China's growing demand for raw materials by announcing expansions that will add a total of 36 million mt/y to global iron-ore output by mid-2009, at a cost of dollar 2.87 billion. BHP Billiton plans to increase its iron-ore mining capacity in Western Australia from 118 million mt/y of ore to 129 million mt/y by the end of 2007 by spending dollar 1.3 billion, with ramp-up expected to take 18 months. BHP Billiton's joint venture partners, Itochu Minerals & Energy and Mitsui & Co, are expected to contribute a further dollar 220 million. At the same time, Rio Tinto plans to spend dollar 1.35 billion on its wholly-owned Yandicoogina mine and port expansions to boost its overall iron-ore shipping capacity in Western Australia from about 175 million mt/y to almost 200 million mt/y. These new expenditures by both companies are in addition to capital already spent or currently being spent on previously announced expansion projects in Western Australia at Mt Newman, Yandicoogina, and West Angelas.