Bomesc to Supply Equipment for BHP's South Flank Mine
Chen Juan|Tang Shihua
/SOURCE : Yicai
Bomesc to Supply Equipment for BHP's South Flank Mine

(Yicai Global) Aug. 1 -- A unit under Bomesc Offshore Engineering has signed an almost CNY375 million (USD55 million) assembly and fabrication deal for the South Flank iron ore pit run by international mining giant BHP Billiton.

Tianjin Bomesc Offshore Engineering will supply the equipment for the mine in Pilbara, Western Australia, its parent said in a statement yesterday. The subsidiary plans to start building the equipment this month in time to start delivering batches from next December.

BHP Billiton in June approved USD2.9 billion in capital expenditure for the South Flank project, which it expects to remain operational for more than 25 years after production starts in 2021. It has an 85 percent stake in the project and began construction this week.

"The project will create around 2,500 construction jobs, more than 600 ongoing operational roles and generate many opportunities for Western Australian suppliers," said Mike Henry, BHP's president of mineral operations in Australia. "It will enhance the average quality of BHP's Western Australia Iron Ore production and will allow us to benefit from price premiums for higher-quality lump and fines products."

Bomesc is a modular engineering, procurement and engineering company focused on the design and construction of equipment for offshore oil and gas rigs and liquefied natural gas mines.

Editor: James Boynton

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Keywords: Pilbara , South Flank Mine , Iron Ore , BHP Billiton , Bomesc Offshore Engineering