BHP Billiton has approved development of its Yarnima Power Station to secure future power supply for its Western Australia Iron Ore mining operations in the Pilbara. BHP Billiton will build, own, and operate the combined cycle gas turbine (CCGT) power station, to be located in Newman, which will deliver 190 MW to replace supply from the existing Newman Power Station. The capital cost of the project is expected to be $597 million (BHP Billiton share $507 million). The power station will include gas turbines equipped with heat recovery steam generators to
capture waste heat for the generation of additional power. This will minimise gas usage while increasing thermal efficiency and reducing carbon emissions. In the event of a gas service interruption, the plant has also been configured to allow normal operations to continue using diesel fuel.

Power supply from this project will be available in the first half of calendar year 2014.

BHP Billiton President Iron Ore, Ian Ashby, said “Yarnima Power Station will power our existing operations and provide a platform for further mine development. By employing state of the art technology, this power station will also increase our carbon efficiency and promote long term energy sustainability.”

BHP Billiton’s partners in its Pilbara Iron Ore operations are: Itochu Minerals & Energy of Australia, Mitsui-Itochu Iron and Mitsui Iron Ore Corp.