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.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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