BHP and ICNWA work together on South Flank
BHP has approved initial funding for the South Flank Iron Ore project, a move expected to generate several hundred Pilbara construction jobs ahead of a full go-ahead next year for the $3-4 billion iron ore development.
According to BHP, the project, BHP Iron Ore’s first significant capital project since the end of the boom, is expected to be submitted for board approval by mid-2018, with first ore targeted in 2021 and ramp-up timed to coincide with the ramp-down of Yandi.
BHP Minerals Australia Operations President Mike Henry said the company was keen to engage with local suppliers, though only those who could offer “true value-add” to the company’s iron ore business.
Initial funding of $244 million for South Flank would be used primarily for the expansion of accommodation facilities to support current and future workforce requirements.
ICNWA has been working with the project team since February 2017, assisting the procurement teams to develop the initial work scope documents to publish on ICN Gateway and providing advice on Australian capability on early works packages.
Thirty work packages have now been listed on Gateway receiving more than 300 registrations of interest from Australian suppliers.
‘BHP is committed to ensuring full compliance with the Australian Industry Participation process and is working closely with the ICNWA team to ensure Australian companies get every opportunity to participate,’ said Mark McCarthy, who is leading the delivery of ICN services for the project.
‘BHP is seeking expressions of interest from suitably-qualified contractors to gain an understanding of the capacity and capability of available contractors for the proposed project through the ICN Gateway portal.’
One of the world’s biggest engineering, procurement, construction and maintenance companies, Texas based Fluor Corporation, will oversee construction of BHP’s South Flank Iron Ore project in the Pilbara after winning the key Project Construction Management services contract. The company’s local subsidiary Fluor Australia has been awarded the “full scope” of PCM services for South Flank.
ICNWA will be working with Fluor Australia and all awarded contractors to identify local industry capability on work packages more than $1 million dollars in value.
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