BHP Port Hedland Operations
BHP has announced a significant investment of $1.4 billion to enhance its Port Hedland operations, aiming to achieve a long-standing target of 305 million tonnes per annum (mtpa) of iron ore. The project, named the Port Debottlenecking Project 2 (PDP2), will commence construction in December 2023 at the company’s Nelson Point facility, with initial production expected by the final quarter of 2028.
The initiative includes the addition of a sixth car dumper and various supporting infrastructure. According to BHP’s Western Australia Iron Ore (WAIO) president, Tim Day, this development represents a “major step forward” in enhancing supply chain resilience, unlocking capacity, and driving productivity. He emphasized the importance of the Pilbara region, stating, “The Pilbara is the engine room of the Australian economy, and this investment will ensure it keeps firing.”
Strategic Infrastructure Upgrades
The new infrastructure will facilitate a substantial increase in operational efficiency. Each car dumper is designed to unload two 135-tonne rail cars simultaneously, translating to a capacity of approximately 16,000 tonnes of iron ore per hour. This strategic upgrade positions BHP on a path toward its medium-term objective of 350 mtpa, while the company anticipates maintaining production levels above 305 mtpa from the end of the 2028 financial year.
BHP’s recent annual report indicates that this investment, along with other ongoing projects, will enable the company to sustain its ambitious production goals. Last year, the company produced 290 mt from the Pilbara, with projections for 2026 estimating output between 284 mt and 296 mt.
New Mining Ventures on the Horizon
In addition to the port upgrades, BHP has secured renewed investment support from long-time partners Mitsui and Itochu for the development of a new satellite mine. The proposed open-pit Minsters North deposit, located approximately 13 kilometers from BHP’s Yandi mine, is expected to produce around 20 million tonnes annually once operational.
While studies are currently underway, BHP plans to make a final investment decision by June 2024. This new venture further exemplifies BHP’s commitment to expanding its operations in the Pilbara region, ensuring a robust supply of iron ore to meet global demand.
As BHP continues to invest heavily in infrastructure and new projects, the company remains focused on maintaining its leadership position in the iron ore market, reinforcing its commitment to sustainable and productive mining practices.
