BHP Billiton 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 megawatts to replace supply from the existing Newman Power Station. The capital cost of the project is expected to be US$597 million (BHP Billiton share US$507 million).

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

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

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