BHP extends WAIO air charter contract

BHP's Western Australia Iron Ore operations Image: BHP

BHP has added two years to its Western Australia Iron Ore (WAIO) air charter services contract with Alliance Aviation Services.

The relationship between the two companies dates back to 2009.

Alliance chief executive officer Lee Schofield said the company welcomed the two-year extension.

“Alliance is delighted to be continuing the provision of these charter services into the Pilbara,” he said.

“Our commitment to safety and providing our clients with industry leading on time performance has played a significant role in being awarded this extension.

“We look forward to continuing our exceptional safety and operational record for BHP.”

BHP delivered an iron ore production record for the second half of 2020 despite the COVID-19 pandemic’s impact on the mining industry.

The company produced 128.4 million tonnes of iron ore (or 145 million tonnes on a 100 per cent basis) during the period.

Record production was also seen at the Jimblebar iron ore mine which produced 36,815 tonnes in December 2020 (year to date).

BHP’s WAIO operations include four processing hubs, five mines, rail and port operations in the Pilbara region of Western Australia.

It has four main joint ventures (JVs) under its WAIO operations, including Mt Newman, Yandi, Mt Goldsworthy and Jimblebar.

The miner has an 85 per cent interest in each JV, with Mitsui and ITOCHU sharing a stake in the remaining 15 per cent.

Alliance stated that the extension of BHP’s contract demonstrated its strong reputation and customer base.

The company earned record profits in its half year results during the 2021 financial year, earning $105.8 million in contract revenue for the period.

Thirty per cent of Alliance’s revenue was related to contracts related to iron ore commodities, while 17 per cent was related to gold.

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