Australian miner BHP Billiton has announced that it has approved the development of the Caval Ridge Mine project and expansion of the Peak Downs Mine in the northern Bowen Basin in Central Queensland, Australia.
The initial project with a total investment of US$4.2 billion will add 8 million mt per year capacity in export metallurgical coal. BHP Billiton will account for US$2.1 billion of the total investment in the project. First coal is expected in calendar year 2014.
An additional 2 million mt per year requiring the addition of mining equipment is also expected. However, this second expansion has not been granted permission yet.
According to the BHP Billiton statement, the new Caval Ridge Mine will have the capacity to produce 5.5 million mt per year. The Peak Downs Mine will expand production by 2.5 million mt per year.