The US$1.3billion project will increase capacity at BHP Billiton's Area C iron ore mine in Western Australia by 20 million tonnes per annum (Mtpa) to 42Mtpa. This includes approximately US$235 million of sustaining capital required for the replacement of ageing port and rail infrastructure.

The RGP3 scope includes the development of a new pit at the Area C ‘E Deposit’ and the construction of new crushing and screening facilities at the mine’s ‘C Deposit’. Port and rail facilities will also be expanded to facilitate this capacity increase and position the business for further staged growth. The expansion will include a new stockyard, upgraded car dumper and ship loading facilities, as well as additional rolling stock and rail sidings. The initial production scheduled to begin in the fourth quarter of calendar year 2007.

BHP Billiton’s partners in the Mt Newman Joint Venture are ITOCHU Minerals & Energy of Australia and Mitsui-Itochu Iron. The Mine and Port Developments Joint Venture (MPD JV) was awarded the implementation of the Engineering, Procurement and Construction Management (EPCM). The MPD JV is a 50/50 partnership between Sinclair Knight Merz and Fluor Australia.