BHP Billiton Approved Coal Investment Of US$845 Million

BHP Billiton approved investment of US$845 million to sustain operations at Illawarra Coal, in southern New South Wales, Australia by establishing a replacement mining area at the Appin Mine.

The replacement area will have a production capacity of 3.5 million tonnes per year of metallurgical coal and will sustain Illawarra Coal’s production capacity at 9 million tonnes per year. Appin Area 9 will be operational in 2016 and will replace production at the West Cliff Mine. The project includes roadway development, new ventilation infrastructure, new and reconfigured conveyors and other mine services.

Illawarra Coal is 100 per cent owned by BHP Billiton!

Metallurgical Coal primarily produces and markets high quality hard coking coals for the international steel industry. In addition, we supply a wide range of other coal qualities to satisfy specific customer requirements. Production is from our low cost asset base located in Queensland (predominantly open cut mines owned in an alliance with Mitsubishi Development Pty Ltd ) and New South Wales (100 per cent underground operations).

Metallurgical coal is an essential raw material in the production of steel which is used in buildings, household items and other goods and services that modern societies need.

BHP Billiton Metallurgical Coal’s operations are strategically located in areas with seaborne access to key steel producing regions, delivering logistical advantages to our customers. We have access to dedicated deepwater ports allowing the use of large capacity vessels to further build on regional logistic advantages.

With long life reserves, a strong portfolio of undeveloped resources and key infrastructure, we have the flexibility to continually expand our production capacity in line with customer needs.

The development has received all necessary regulatory approvals.

BHP Billiton Metallurgical Coal President, Hubie van Dalsen, said: “The investment sustains Illawarra Coal’s production rates and recognises the value of its high quality metallurgical coal resources.

“It is also good news for local jobs and the economy in the region.”

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Posted by WoodlawnPost on Jun 25 2012. Filed under Coal. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.