BHP Worsley smelter cost blowout

BHP Billiton has announced a cost blow out at its Worsley Alumina expansion project.

According to the miner, the “capital cost estimate for the (Worsley) project, encompassing the development of the Marradong mine, refinery expansion and connection to a multi-fuel cogeneration unit, has increased to US$ 2 995 million”.

The forecast cost of nearly US$ 3 billion, up from previous estimates of US$2.2 billion
BHP CEO non ferrous Andrew Mackenzie explained that the expansion of the complex 1.1 million tonne per annum refinery “has resulted in significantly lower levels of construction progress than previously anticipated”.

However, he went on to say that “upon completion of the Worsley expansion and growth project, the refinery will have the capacity to produce 4.6 mtpa of smelter grade alumina,” making the site one of the world’s leading alumina refineries.

It’s refinery and smelter are located near Collie, in Western Australia.

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