BHP has approved $900m (A$1.28bn) for the Ministers North Project, a high-grade iron ore deposit located south-east of Yandi in Western Australia’s (WA) Pilbara region.
The project is positioned as a satellite extension of Yandi and will operate as part of a joint venture between BHP, Itochu Corporation and Mitsui & Co, which hold 85%, 8% and 7% interests, respectively.
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It aims to deliver around 20 million tonnes per annum (mtpa) of iron ore once fully operational.
Ministers North will leverage the existing Yandi infrastructure to support BHP’s WA Iron Ore (WAIO) medium-term production target of 305mtpa on a 100% basis.
The project scope includes the development of new orebodies, construction of a 13km haul road and land bridge between Yandi and Ministers North, as well as upgrades to Yandi’s infrastructure with the installation of new primary and secondary crushers.
Site works for the development are scheduled to commence this month, targeting first ore in financial year 2029 (FY29).
BHP WA iron ore asset president Tim Day said: “Yandi has been an important part of our WA iron ore operations for more than 30 years.
“Our investment in Ministers North helps us build on that legacy. We are making the most of the infrastructure, skills and experience we already have to bring a new orebody into production and keep our high-quality Pilbara iron ore flowing.”
The company expects the project to yield returns of more than 30%.
BHP’s broader financial update showed record iron ore production at WAIO, which reached 265 million tonnes (mt), a 1% increase from the previous year.
The company has set production guidance for FY27 at 260–272mt.
BHP realised an average price of $84.56 per wet tonne for WAIO iron ore in the reporting period, up 3% compared to the previous year.
In addition to developments in iron ore, BHP reported that copper production totalled approximately 2mt for the second consecutive year.
The company highlighted its focus on managing unit costs and on advancing various copper projects, as well as ongoing emissions reduction efforts through the trial of two Cat 793 XE battery-electric haul trucks at WAIO.
