BHP Billiton: RGP5 iron ore project's railway to resume

Nov. 6 MetalBiz--BHP Billiton stated on November 5 that after the majority of contractors settled the security issue US $4.8bln RapidGrowthProject5 iron ore expansion project's railway work in Pilbara region West Australia and then currently it has resumed.

Spokesman of the company said that BHP Billiton had been worried that contractors in railway work did not feel satisfactory with part healthy and security request and on November 2 the company asked these contractors to halt the construction.

These security issues have been solved, most of workers from contractors have return to their position, and the rest also did on November 5.

The series of BHP Billiton's disaster and accidents happened in Pilbara, some people accused that the company relied on the contractors, instead of Rio Tinto's ownership operating pattern.

BHP Billiton and Rio Tinto are planning to establish a joint venture in Pilbara region, if it can be implemented, their cooperative iron ore business will adopt the owner-ship mechanism.

RGP5 project aims at making BHP Billiton's Pilbara increase 50mln tons of iron ore per year, and the first production will be carried out in the second half of 2011.