The world’s biggest miner, BHP Billiton, has announced a $US279 million ($A254.24 million) expansion of its manganese operations in the Northern Territory.
The expansion will increase the GEMCO operations at Groote Eylandt, on the Gulf of Carpentaria, from 4.2 million tonnes a year (mtpa) to 4.8 mtpa.
The expansion, which involves building a dense media circuit by-pass facility, would be completed by late 2013, BHP said in a statement on Friday.
The expansion also will increase road and port capacity to 5.9 mtpa, creating 1.1 mtpa of unused capacity for future expansions.
BHP’s manganese operations in Australia and South Africa, Samancor Manganese, are owned jointly with Anglo American. BHP holds 60 per cent.
BHP’s share of the expansion cost will be $US167 million ($A152.18 million).
GEMCO, a 46-year-old project, was the world’s largest and lowest cost producer of manganese ore, accounting for more than 15 per cent of the world’s production BHP Billiton manganese president Tom Schutte said.
Manganese is used in iron and steel production.
AAP
