Australia-based miner BHP Billiton has announced that it has approved an investment of US$845 million to open a new mine at its Illawarra Coal subsidiary, in southern New South Wales, Australia to help maintain production rates.
The new mining area, Appin Area 9, will have a production capacity of 3.5 million mt per year of metallurgical coal and will sustain Illawarra Coal's production capacity at 9 million mt per year.
According to BHP'S statement, the mine 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. The company also stated that all the necessary regulatory approvals for the project have been completed.