Appr Exp of WA IO Capacity

BHP Billiton Limited
25 October 2004

     BHP Billiton Limited is issuing this announcement to fulfil disclosure
  obligations arising from its secondary listing on the London Stock Exchange.

    The text of this release is identical to that issued by BHP Billiton Plc
                                    earlier.


Date                 25 October 2004
Number               35/04


 BHP BILLITON APPROVES EXPANSION OF WESTERN AUSTRALIAN IRON ORE CAPACITY TO 118
                            MILLION TONNES PER ANNUM

BHP Billiton today announced the approval of Rapid Growth Project 2 (RGP2), a
$US575 million (*BHP Billiton share US$489 million) project which will expand
the capacity of its Western Australia iron ore operations from 110 million
tonnes per annum (Mtpa) to 118 Mtpa during the second half of calendar year
2006.

RGP2 will include the development of a new brockman resource, Orebody 18, with
an initial capacity of 8Mtpa, together with plant modifications at the existing
Orebody 25 mine, and additional rail and port capacity.

Group President Carbon Steel Materials, Bob Kirkby, said: 'This latest expansion
is a key component of BHP Billiton's plans to incrementally expand iron ore
infrastructure and systems capacity in line with market demand. It continues BHP
Billiton's commitment to ensuring that we can supply the significant increase in
demand for steelmaking raw materials from our customers.'

'In October last year, we opened the Area C mine and complemented this
development with the completion of the port and railroad Products and Capacity
Expansion Project in January 2004. By June 2004, a further expansion to increase
installed operating capacity to 100Mtpa was completed and commissioning is now
underway on the Rapid Growth Project 1 to increase capacity to 110Mtpa,' Mr
Kirkby said.

'A feasibility study is also currently underway to determine the optimum iron
ore production, railing, processing and shipping infrastructure for tonnages of
at least 145Mtpa. This study is due for completion in early 2005.'

Orebody 18 contains total resources of 178Mt; comprising a measured resource of
136Mt, indicated resource of 38Mt and inferred resource of 4Mt.

(The information is based on information compiled by P. Schultz, MAusIMM who is
a full time employee of BHP Billiton Iron Ore Pty Ltd. Mr Schultz has sufficient
experience, which is relevant to the style and type of deposit and to the
activity that is undertaken to qualify as a Competent Person defined in the 1999
edition of the 'Australasian Code for Reporting of Minerals Resources and Ore
Reserve'. The Competent Person consents to the inclusion in this release of the
matters based on their information in the form and context in which they
appear.)

* $US86 million will be provided by BHP Billiton Joint Venture Partners ITOCHU
Minerals & Energy of Australia and Mitsui Iron Ore Corporation.

Background notes:

BHP Billiton's iron ore operations are mostly located in the Pilbara region of
Western Australia. The permanent workforce, employed either directly or through
contract mining arrangements, is approximately 5,000 of which about 75% reside
in the Pilbara towns of Newman and Port Hedland.

In the Year Ending June 2004, BHP Billiton produced 88.9 million tonnes (100%
terms) of iron ore from the six mines located in the Pilbara - Mt Whaleback and
nearby Satellite Orebodies 23, 25, 29 and 30, Jimblebar, Yandi, Area C and
Yarrie.

Processing and shipping facilities are located at Nelson Point and Finucane
Island, Port Hedland. These facilities are connected to the six mines by almost
1,000 kilometres of railway track.

Key elements of the RGP2 project are:


  • Mining

      • Development of the Orebody 18 brockman resource, near Newman, to add
        to the blend of ores from the Mt Whaleback, Satellite Orebodies and
        Jimblebar mines.

      • Initial production at Orebody 18 will be 8 Mtpa, although capacity of
        12 Mtpa will be installed.

      • Modifications to the Orebody 25 mine to produce additional brockman
        lump and fines products.

  • Port

      • The construction of a new car dumping facility and ancillary works.

      • The car dumper will have an ultimate capacity of 40 Mtpa, however this
        will be limited to 8Mtpa initially. Future expansion projects will
        realise the additional capacity in the car dumper as further downstream
        capacity is installed.

      • This additional car dumping capacity will allow upgrades to existing
        dumpers to be undertaken in readiness for future market growth.

  • Rail

      • The procurement of additional railway rolling stock.

      • Additional railway to support the new mines and car dumper.


Further information on BHP Billiton can be found on our Internet site: 
http://www.bhpbilliton.com


Australia                                                   United Kingdom
Jane Belcher, Investor Relations                            Mark Lidiard, Investor & Media Relations
Tel: [phone] Mobile: [phone]                Tel: [phone]
email: [e-mail]                       email: [e-mail]

Tania Price, Media Relations                                Ariane Gentil, Media Relations
Tel: [phone] Mobile: [phone]                Tel: [phone] Mobile: [phone]
email: [e-mail]                          email: [e-mail]

United States                                               South Africa
Francis McAllister, Investor Relations                      Michael Campbell, Investor & Media Relations
Tel: [phone] Mobile: [phone]                Tel: [phone] Mobile: [phone]
email: [e-mail]                 email: [e-mail]




BHP Billiton Limited ABN 49 004 028 077                     BHP Billiton Plc Registration number 3196209
Registered in Australia                                     Registered in England and Wales
Registered Office: Level 27, 180 Lonsdale Street Melbourne  Registered Office: Neathouse Place London SW1V 1BH United
Victoria 3000                                               Kingdom
Telephone [phone] Facsimile [phone]        Telephone [phone] Facsimile [phone]

                                                                   
               The BHP Billiton Group is headquartered in Australia


                      This information is provided by RNS
            The company news service from the London Stock Exchange