BHP has approved a $900 million (100% basis) investment to develop the Ministers North iron ore project in Western Australia's Pilbara, reinforcing its strategy to sustain long-term production from its flagship iron ore operations.

The project will develop the high-grade Brockman ore deposit as a satellite extension of the company's long-running Yandi mine, leveraging existing infrastructure to reduce development costs and improve operational efficiency. Once fully ramped up, Ministers North is expected to produce 20 million tonnes per annum, helping support BHP's medium-term iron ore production target of 305 million tonnes per year on a 100% basis.

Construction activities are scheduled to begin this month, with first ore targeted in fiscal 2029.

Development plans include a 13-kilometre haul road and land bridge linking Yandi and Ministers North, alongside upgrades to existing infrastructure and the installation of new primary and secondary crushers at Yandi.

BHP Western Australia Iron Ore Asset President Tim Day said the investment would extend the life of the company's Pilbara operations by utilizing established infrastructure, workforce expertise, and operational capabilities as the Yandi mine matures.

Ministers North is owned by a joint venture comprising BHP (85%), Itochu Corporation (8%) and Mitsui & Co. (7%), highlighting the partners' continued commitment to maintaining production capacity in one of the world's largest iron ore mining regions.

The approval comes as major Pilbara producers continue investing in replacement mines to offset the natural depletion of existing operations while preserving export volumes. Leveraging existing processing facilities and transport infrastructure has become a common strategy among Australian iron ore miners to lower capital costs and sustain long-term output.

By Charles Kennedy for Oilprice.com

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