Diversified miner BHP Billiton is considering the development of its South Flank iron-ore deposit, in the Pilbara, which could result in the development of the world’s largest iron-ore mining and processing centre.

BHP’s asset president for Western Australian iron-ore, Edgar Basto on Wednesday said the Yandi mine, located in the central Pilbara, was currently operating at 80-million tonnes a year, but would be depleted over the next five to ten years.

“We are looking at options to sustain this production,” he said, pointing out that the South Flank deposit was currently the preferred long-term solution, and that the investment case for using this deposit for replacement tonnes was strong, given the ability to leverage aspects of the existing infrastructure at the Mining Area C operation and the ore quality.

“While this project is still in study phase, if approved by the board, it will result in the development of the world’s largest iron-ore mining and processing centre located next to billions of tonnes of high-grade resources.

“This operation would continue our path to reducing operating costs by generating favourable economies of scale and synergies,” Basto said.

Meanwhile, BHP’s re-rail programme was running six months ahead of schedule, and will be completed in the June quarter of this year, he noted.

The programme replaces the existing rail to allow for heavier axels, improved relaibity and higher speeds, which will help to deliver on BHP’s long-term supply chain reliability to support its 290-million-tonne-a-year capacity by the end of 2019.