BHP Billiton Approves Two New Ship Loaders at Nelson Point Iron Ore Terminal

Researched by Industrial Info Resources Australia (Perth, Australia)--BHP Billiton (NYSE:BHP) has approved installation of two new ship loaders at its Nelson Point iron ore terminal in Port Hedland, Western Australia. The $330 million project is targeted to increase the reliability of its inner harbour port facilities by creating a quicker turnaround. It is expected to raise the loading capacity by an estimated 5,000 tonnes per hour.

The port facility has eight ship loaders, of which two are being replaced since they are 40 years old. The remaining six already have capacities of 12,000 tonnes per hour. The project will involve the creation of additional port facilities, which eventually will pave the way for Western Australia's targeted supply of 270 million tonnes of iron ore per year.

The ship loaders are being fabricated, assembled and tested overseas, and will be installed via heavy lift ships onto the wharf. The project team expects to complete the installation of each new ship loader in a 40-day period, and two major shutdowns are being scheduled for the months of June and September 2013.

The company is in the process of awarding the major construction contract and has invited expressions of interest from three potential suppliers: Downer Group, Monadelphous and McConnell Dowell. The project also involves FAST JV, which is a joint venture between major design engineering firms Sinclair Merz & Knight (SKM) and Fluor that will oversee the detailed engineering. BHP expects final awarding of the major contract by March 2014, and further subcontracting opportunities will be released subsequently. McConnell Dowell is considered a strong frontrunner for the job, as the company is involved in other BHP projects in the Port Hedland region.

BHP Billiton Iron Ore President Jimmy Wilson said: "This is an important investment that is consistent with our commitment to maximize the capacity of the Western Australia Iron Ore inner harbour and deliver substantial value to shareholders and other stakeholders."

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