BHP commits $779m to Australian port development

BHP Billiton, the world's biggest mining company, has announced $917m in pre-commitment funding for the construction of an outer harbour facility for its Western Australia iron ore operations.

The money, of which BHP will provide $779m, will go towards feasibility studies and for dredging to begin, subject to the necessary regulatory approvals.

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The first phase of the outer harbour would include the proposed construction of a four kilometre jetty, a four-berth wharf, 32 kilometres of dredged departure channel and landside infrastructure, including stockyards and a rail spur.

Start-up would be in the first half of 2016.

BHP's iron ore boss, Ian Ashby, said of the funding commitment: "This investment is an important first step in providing the infrastructure to allow us to fully develop our world class resource base in the Pilbara. The development of the outer harbour is pivotal for our longer term growth objectives and this initial funding is rapidly turning those plans into a reality."

Shares in BHP have fallen 8.6% over the past 12 months.

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