BHP has announced a significant investment of $1.4 billion for a new car dumper and improvements to port infrastructure at its Nelson Point operations in Port Hedland. This initiative aims to help the mining company achieve its long-standing target of producing 305 million tonnes per year (Mtpa) of iron ore. Construction of the Port Debottlenecking Project 2 (PDP2) is set to begin in December 2023, with operations expected to commence in the final quarter of 2028.
According to Tim Day, BHP’s Western Australia Iron Ore (WAIO) head, this project represents a “major step forward to boost our supply chain resilience, unlock capacity and drive productivity.” He emphasized the importance of the Pilbara region, referring to it as “the engine room of the Australian economy,” and highlighted that the investment is crucial for sustaining its economic performance.
The addition of a sixth car dumper is pivotal for BHP, as it aims to maintain a production level of 350 Mtpa in the medium term. In its most recent annual report, the company indicated that the new infrastructure would enable it to achieve greater than 305 Mtpa on a 100 percent basis starting from the end of the 2028 financial year. Each car dumper is estimated to unload two 135-tonne rail cars simultaneously, facilitating the unloading of up to 16,000 tonnes of iron ore every hour.
BHP reported an output of 290 Mt from the Pilbara last year, with projections for 2026 estimating a range between 284 Mt and 296 Mt. Day reiterated BHP’s commitment to maintaining WAIO’s production target of 305 million tonnes per year, stating that infrastructure upgrades and technology enhancements are essential to support this goal.
The announcement follows BHP’s recent confirmation of renewed investment backing from long-term Pilbara partners, Mitsui and Itochu, for a new satellite mine. The planned open-pit Minters North deposit, located approximately 13 km from BHP’s Yandi mine, is projected to produce around 20 million tonnes annually once operational. However, further studies are underway, and a final investment decision is anticipated by June 2024.
This strategic investment not only reflects BHP’s confidence in the ongoing demand for iron ore but also underscores the company’s commitment to enhancing its production capabilities in Western Australia amidst a competitive global market.
