Swiss mining giant Xstrata Plc's board of directors has approved the development of the Ravensworth North open cut mine in the Upper Hunter Valley of New South Wales, Australia for a total investment of $1.36 billion. The project will be jointly owned by Cumnock No. 1 Colliery Pty Limited (Xstrata Coal) - 90 percent, and by ICRA Cumnock Pty Limited (Itochu) - 10 percent.
According to a company statement, situated within the existing Cumnock Coal and Ravensworth complex, the Ravensworth North open cut mine will produce 8 million mt per annum of export thermal and semi-soft coking coal at full production, with a mine life of approximately 26 years. The project area encompasses the existing Xstrata Coal Ravensworth and Cumnock Operations.
Construction of the mine is expected to commence in early 2011, subject to the receipt of approvals. First coal is expected to be delivered in July 2012.