BHP Billiton today marked the completion of its Products and Capacity Expansion (PACE) project with an official opening ceremony in Port Hedland by Minister for Planning and Infrastructure the Hon. Alannah MacTiernan and BHP Billiton’s President Western Australian Iron Ore and Boordarie Iron, Graeme Hunt.

Announced in April 2002, the US$351 million PACE project encompassed the upgrade and expansion of port and rail capacity at the Western Australian iron ore operations to 100 million tonnes per annum (Mtpa).  

Mr Hunt said the project was a cornerstone of BHP Billiton’s strategy to meet the ongoing growth in global demand for iron ore products.

“The demand for iron ore, particularly from China, has increased substantially and PACE complements our recent mining expansions at Mt Whaleback and Yandi, as well as the new Area C mine,” he said.

“As we have demonstrated over more than 38 years as a producer of iron ore in the Pilbara, we are well placed to incrementally grow our iron ore business to meet market demand.”

Mr Hunt said the PACE project provided an excellent platform from which to continue to increase rail and port capacity.

“Only last week we announced plans to expand the capacity of our Western Australian iron ore operations to 110Mtpa by the end of CY2004 on the back of infrastructure already installed as part of the Area C and PACE projects,” he said.

The PACE project included the establishment of a new ‘Western Stockyard’, a major upgrade of the dust management and handling systems, an upgrade of the under-harbour tunnel conveyor and the establishment of an additional lump re-screening facility.

In addition, a fourth shipping berth was constructed to accommodate 250,000 dead weight tonne vessels and a number of rail sidings were expanded to accommodate longer trains.

More than two million hours were dedicated to the construction of PACE and a peak workforce of over 500 people was employed throughout the two year build period, with 5.4 per cent of the workforce being indigenous.  The project was also completed without a lost time injury.

Mr Hunt said the project incorporated a strong sense of community awareness.

“Throughout the development of the PACE project our focus has been to understand and respond to community opinions on topics related to the expansion,” he said.

“We have also worked closely with state and local governments and community groups at all levels to ensure that PACE is a success for the Pilbara and Western Australia.”

As part of the PACE opening, BHP Billiton Iron Ore and the Western Australian government also announced the commitment of A$9 million to programs to improve a range of community, sporting and cultural facilities in Port Hedland.

BHP Billiton Iron Ore’s new port facilities commenced operations on 31 January 2004 with the first processing, loading and shipment of iron ore from the new berth.