BHP has approved a new $4 Billion iron ore project in Western Australia's Pilbara.

The South Flank mine is expected to start production in 2021 and have a life span of more than 25 years. 

"The project will create around 2,500 construction jobs, more than 600 ongoing operational roles and generate many opportunities for Western Australian suppliers," said Mike Henry, BHP's head of mineral operations.  He added that the South Flank will fully replace the 80 million ton per annum production from the Yandi mine, which is almost mined out.

The BHP move follows Fortescue which green lighted another Pilbara project, a new $1.3 Billion at Eliwana.  Rio Tinto is expected to give its thumbs up to the $3 Billion Koodaideri mine by year's end.