BHP Billiton will go ahead with the Rapid Growth Project 4 (RGP4) which will increase system capacity across its Western Australian iron ore operations to 155 million tonnes/year. Initial production is expected to start in the first half of the 2010 calendar year.

BHP Billiton has approved capital expenditure of US$1.85 billion for its share of the project, which includes development of a new crushing and screening plant, as well as additional stockyards, car dumping and train loading facilities at Mt Whaleback. Infrastructure upgrades will also be implemented at satellite orebodies and the rail and port operations.

BHP Billiton Iron Ore president Ian Ashby says RGP4 will deliver large-scale benefits to the company, its customers, employees and local communities.

"Our high quality asset base in the Pilbara and series of staged growth projects have helped ensure the continued delivery of outstanding returns to BHP Billiton shareholders," he says.

"The RGP4 project will further increase the efficiency of our integrated mine, port and rail operations and represents a key investment in our ongoing strategy to be more responsive to customer needs.

"The project will also have substantial flow-on benefits to Pilbara communities through the creation of employment and business opportunities, improved management of valuable water resources and significantly reduced dust emissions."

Ian Ashby says that a range of options to expand capacity beyond RGP4 are also being evaluated, subject to customer demand.

"We are committed to creating further value-adding options for the business and providing the next phase of growth opportunities beyond our recent expansion projects," he says.

By the end of 2007 BHP Billiton will have increased the capacity of its Western Australian iron ore operations by 60 million tonnes/year over four years. This growth will have been achieved through a series of sequential projects, delivered on time and within budget.

BHP Billiton's partners in the Pilbara iron ore operations are: Itochu Minerals & Energy of Australia, Mitsui-Itochu Iron and Mitsui Iron Ore Corporation.

The key infrastructure development for RGP4 include:

Mines - construction of crushing and screening facilities and car dumper at Mt Whaleback; construction of a new ore processing plant at Jimblebar and Ore handling plant upgrades at Yandi.

Port - car dumper upgrade at Nelson Point; construction of a second stockpile row in the East Yard at Finucane Island; construction of new offices, warehouse and workshops at Finucane Island and general infrastructure upgrades to reduce dust emissions.

Rail - Additional locomotives, ore wagons and mainline sidings.

Construction of Rapid Growth Project 3 is currently under way. The project will increase capacity to 129 million tonnes/year, from the current 109 million tonner/year, with initial production to start by the end of 2007.