en.Wedoany.com Reported - BHP has approved a $900 million (approximately A$1.28 billion) investment for the Ministers North Project, a high-grade iron ore deposit located southeast of Yandi in the Pilbara region of Western Australia.
Operated as a satellite expansion of Yandi, the project is a joint venture with BHP, Itochu Corporation, and Mitsui & Co holding 85%, 8%, and 7% interests, respectively. Upon full production, the project targets an annual output of approximately 20 million tonnes of iron ore.
The Ministers North Project will leverage existing Yandi infrastructure to support BHP's Western Australia Iron Ore (WAIO) medium-term production target of 305 million tonnes per annum on a 100% basis. The project scope includes developing new ore bodies, constructing a 13-kilometer haul road and land bridge connecting Yandi to Ministers North, and upgrading Yandi infrastructure with new primary and secondary crushers. Site work is scheduled to commence this month, with first ore targeted for the 2029 financial year.
Tim Day, BHP's Asset President for Western Australia Iron Ore, stated that Yandi has been a key part of WAIO operations for over 30 years. The investment in Ministers North builds on this foundation, leveraging existing infrastructure, skills, and experience to bring new ore bodies into production and maintain a consistent supply of high-quality Pilbara iron ore. The company expects the project's internal rate of return to exceed 30%.
In BHP's broader financial update, WAIO achieved a record iron ore production of 265 million tonnes, up 1% year-on-year. The company set a production guidance target of 260 to 272 million tonnes for the 2027 financial year. During the reporting period, the average realized price for WAIO iron ore was $84.76 per wet metric tonne, up 3% from the previous year. Beyond iron ore, BHP reported copper production of approximately 2 million tonnes for the second consecutive year. The company emphasized its focus on controlling unit costs, advancing multiple copper projects, and ongoing decarbonization efforts, including trialing two Cat 793 XE battery-electric mining trucks at WAIO.
