BHP Billiton Approves US$240 Million Tug-boat Investment

   By Rhiannon Hoyle 
 

SYDNEY--BHP Billiton Ltd. (BHP.AU) said it would spend US$240 million to buy six more tug-boats and build a new eight-pen harbor at Western Australia's Port Hedland iron-ore export hub.

"This project will enable BHP Billiton to safely meet projected demand for tug services and effectively manage shipping risk," such as congestion in the shipping channel, BHP iron-ore president Jimmy Wilson said in an emailed statement.

Iron-ore shipments from Port Hedland, the world's largest export hub for the bulk commodity, have climbed to record levels as miners including BHP have increased their production of the steelmaking ingredient.

In April, the Anglo-Australian miner said it was digging up more iron ore than anticipated as it worked its Australian mines harder, lifting its projected group output for the year through June by 2% to 230 million metric tons.

On Tuesday, BHP said it would also upgrade workshop facilities, operational and service berths and two small boat moorings at the existing Nelson Point tug harbor. The project is scheduled for completion by the end of September, 2016, and is likely to create up to 200 jobs during construction, the miner said.

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