On January 18, Australian iron ore giant BHP Billiton announced that it has pre-approved US$267 million of capital expenditure to accelerate the development of the Caval Ridge and Hay Point Coal Terminal Stage 3 Expansion projects in Queensland, Australia. "The funds will be used for feasibility studies, the procurement of long-lead time items and initial project activities," the mining giant said in its statement.
According to the announcement, the Caval Ridge project is expected to produce an estimated 5.5 million mt per annum of high quality coking coal from the Caval Ridge mine and an incremental 2.5 million mt per annum from the Peak Downs mine. Meanwhile, the Hay Point Coal Terminal Stage 3 Expansion project is expected to increase the annual capacity of the Hay Point Coal Terminal from 44 million mt to 55 million mt per year. Subject to regulatory approvals, final approval for the development of these projects is expected when the feasibility studies are completed, i.e., approximately in the third quarter of 2011.
The Caval Ridge mine, Peak Downs mine and Hay Point Coal Terminal are operated by BHP Billiton Mitsubishi Alliance (BMA), a 50:50 joint venture between BHP Billiton and Mitsubishi Development Pty Ltd.