BHP has approved a significant infrastructure upgrade at its Port Hedland operations in Western Australia to safeguard its medium-term iron ore production targets and improve operational reliability.
The approximately $1.4 billion Port Debottlenecking Project 2 (PDP2) will add a sixth car dumper and additional conveyors to increase ore unloading capacity and reduce downtime during planned equipment renewals from fiscal 2029.
Port Hedland is a critical export hub for BHP’s Pilbara iron ore, where car dumpers unload rail cars carrying ore to be stockpiled or shipped. Currently, five car dumpers operate across Nelson Point and Finucane Island, tipping two 135-tonne rail cars at a time and moving up to 16,000 tonnes per hour. Adding a sixth car dumper will raise equipment availability, allowing the port to operate with five or more car dumpers available more than 90 per cent of the time, up from around 60 per cent currently.
The project also aims to improve ore blending and screening capabilities, contributing to more consistent operations. Construction is expected to start in December 2025, with first ore handled by late 2028. PDP2 follows the recently completed Port Debottlenecking Project 1, which delivered improvements in car dumper and ship loader performance.
BHP’s Western Australian Iron Ore Asset President Tim Day said the investment supports maintaining the company’s annual production target of 305 million tonnes.
“The project is a major step forward to boost our supply chain resilience, unlock capacity and drive productivity across our operations,” Day said.
“The Pilbara is the engine room of the Australian economy, and this investment will ensure it keeps firing.”
Last year, BHP’s Western Australian Iron Ore business recorded a production high of 290 million tonnes on a 100 per cent basis.
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