BHP (ASX: BHP) has produced first ore at its $4.7b South Flank iron ore operation today, making the mining giant’s Pilbara operations the largest iron ore hub globally.
This echoes BHP chief executive Mike Henry’s speech at the Bank of America Metals, Mining and Steel Conference recently where he said the company would announce first production soon.
“In the next few days we will announce first production at the 80mtpa South Flank iron ore project, with its higher grade and lump fraction,” he said. “All brought in on time and on budget in spite of COVID-19.”
Long-term, Mr Henry expects the demand for copper to double and that of nickel to quadruple over the next 30 years.
“Demand for steel will almost double on this basis, and potash will be vital for more efficient agricultural practices,” he said. “And as the shift to cleaner energy sources occurs, the world will still need oil and gas to power mobility and everyday life on its pathway to decarbonisation.”
WA Premier Mark McGowan has congratulated BHP on reaching this important milestone and re-iterated the State Government’s commitment to working with the mining industry to take advantage of international markets.
“I’ve seen [the South Flank] project through from its inception, from turning the sod on site with BHP and Banjima Traditional Owners in 2018 to its completion and now first production of ore,” he said.
“I congratulate BHP on reaching this important milestone and look forward to this project continuing to provide jobs for Western Australians and delivering considerable economic benefit for our State.
“It proves Western Australia is a secure and attractive place to invest.”
