BHP Billiton said on Tuesday its board has approved the $100 million stage one development of the Maruwai metallurgical coal deposit in Central and East Kalimantan, Indonesia.
The world's top miner said that stage one of the project involves the development of the Haju open cut mine, along with development of an associated river port.
The 100 percent-owned Haju mine will exploit a small coal deposit within the Maruwai basin that will initially produce about one million metric tons per annum of high quality metallurgical coal, with the potential to expand to around two million mt per annum. Construction will start immediately, with production expected to commence in mid-2009.
Commenting on the approval, Dave Murray, BHP Billiton president for coal, said, "Today's announcement demonstrates our commitment to growing further our coal business to meet continued strong demand. The Haju mine will be a trial to guide us in the development of the next stage in our Maruwai development."
A feasibility study is currently underway for the development of a three to five million mt per annum coal mine at the larger Lampunut deposit at Maruwai.