Australian miner BHP Billiton has announced that it has received approval for a US$437 million (BHP Billiton share) investment to expand the Cerrejon Coal mine located in La Guajira, Colombia.
BHP Billiton's investment represents one third of the US$1.311 billion expansion to be undertaken by Cerrejon Coal, with joint venture partners British mining company Anglo American and Switzerland-based miner Xstrata contributing equal investment in the project.
The expansion will enable Cerrejon Coal's saleable thermal coal production to increase by 8 million mt per year to approximately 40 million mt per year.
Construction will start in 2011 with completion expected in 2013. The capacity increase to 40 million mt per year is expected to take place by the end of 2015.
BHP Billiton owns 33.3 percent of Cerrejon Coal in equal portion with joint venture partners Anglo American and Xstrata.