BHP Billiton invest $ 2.5 bn metallurgical coal expansions

BHP Billiton to invest $ 2.5 bn for metallurgical coal expansions

1:32 PM, 25th March 2011
BHP Billiton to invest $ 2.5 bn for metallurgical coal expansions

 

MELBOURNE, AUSTRALIA: BHP Billiton approved three key metallurgical coal projects located in the Bowen Basin in Central Queensland, Australia. The projects will add 4.9 million tonnes of annual mine capacity (100 per cent basis) through development of the Daunia operation and a new mining area at Broadmeadow. In addition, 11 million tonnes of annual port capacity (100 per cent basis) will be developed at the Hay Point Coal Terminal. The total investment is $ 5 billion, of which BHP Billiton’s share is $ 2.5 billion. The Daunia mine project, the Hay Point Coal Terminal and the Broadmeadow mine are operations of the BHP Billiton Mitsubishi Alliance, a 50:50 joint venture between BHP Billiton and Mitsubishi Development Pty Ltd.

 

The investment includes, $ 1.6 billion (BHP Billiton share $ 800 million) for development of the new Daunia mine, adjacent to Poitrel. The mine will have the capacity to produce 4.5 million tonnes per annum (mtpa) of export metallurgical coal through a new processing facility. First coal is expected in 2013.

 

The other investment is $ 900 million (BHP Billiton share $ 450 million) to extend the life of the Broadmeadow mine by a further 21 years. The investment will also increase productive capacity by 0.4 mtpa, to a new total capacity of 4.8 mtpa. The project is due for completion in 2013.

 

Lastly it will invest $ 2.5 billion (BHP Billiton share $ 1.25 billion) for stage three expansion of the BHP Billiton Mitsubishi Alliance’s wholly owned Hay Point Coal Terminal, which will increase capacity from 44 mtpa to 55 mtpa. First shipments from the expanded terminal are expected in 2014.

(C) WOC News

 

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