Australia Approves BHP's Plan To Expand Port Facilities

MELBOURNE -(Dow Jones)- Australia's government said Thursday it has given the environmental green light to BHP Billiton Ltd.'s (BHP) plans to expand its iron ore export facilities at Port Hedland, although with 37 strict conditions.

The outer harbor project, which analysts have estimated could cost roughly US$20 billion, is one of three multi-billion dollar expansion projects that BHP has said its board will consider for approval by the end of the year.

Environment Minister Tony Burke said in a statement he had approved the port development in Western Australia, which would complement BHP's existing inner harbor.

"This decision shows that it is possible to apply high environmental standards to major infrastructure and resource projects and ensure potential impacts are managed and minimized to an acceptable level," Mr. Burke said.