BHP Billiton's Phase III Expansion at Hay Point Readies for Construction in Mid-2013

---

Researched by Industrial Info Resources (Perth, Australia)--BHP Billiton Mitsubishi Alliance (ASX:BHP) is moving forward with planned July 2013 construction at its Hay Point Expansion Phase III (HPX3) project in Queensland. Located at about 38 kilometers south of Mackay, Hay Point is one of the largest coal-exporting terminals in world, with a current capacity of 44 million tons per annum. Scope for the work includes increasing the current capacity of the terminal to 55 million tons per annum by 2014 by constructing a third berth and ship loader; replacing existing trestle conveyors and surge bins; and constructing overland conveyors for coal transfer. At an estimated investment of $2.45 billion, the project is expected to be completed in mid-2014.

BHP Billiton selected Bechtel as an engineering, procurement and construction (EPC) contractor for the HPX3 project, along with other projects, such as Caval Ridge, Crinum North and Daunia projects in Queensland. The dredging and site works were completed in early 2012, and the majority of the SMP and civil contracts have been awarded ahead of the major construction kick-off in expected in 2013. Marine works associated with the expansion are carried out by the joint venture between McConnell Dowell and Geosea Australia. A majority of the civil construction, such as access roads, conveyor overpass and surge bin reclamation works, were awarded to and performed by BMD Constructions from Queensland.

HPX3 Project Manager Francois Joubert confirmed that an estimated 40% of construction has been completed, and all long-lead items have been arriving in Mackay. The first shipment of transfer towers arrived in mid-December 2012 and the second shipment, along with the new surge bins, will arrive in March 2013. The ship loader is expected to be delivered in July 2013, just ahead of the major construction kick-off in August 2013. Planned construction is well within the scheduled timelines, and the first coal shipment is expected to go out in April 2014.

With more than $13 billion of investments planned in coal projects, HPX3 will prove to be a major contributor for the continuous growth of central Queensland's coal mining industry. A potential further stage (HPX4) would increase capacity from 55 million to approximately 75 million tons per annum.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.