BHP Billiton Limited (BHP) recently announced that it will invest approximately $400 million to expand Hunter Valley Energy Coal in New South Wales, Australia.
The investment is targeted at increasing thermal coal production by 4 million tonnes per annum (mtpa), to approximately 24 mtpa. The project will deliver its first production in the second half of 2013. The project will also generate approximately 300 new full time jobs along with temporary employment generated during construction.
BHP Billiton is one of the world’s largest diversified resource companies with operations spanning several continents. It has interests in mineral exploration, production and processing, oil and gas exploration and development, and steel production and merchandising.
BHP is a major producer of a range of commodities – aluminum, base metals (including copper), iron ore, manganese, energy coal, metallurgical coal, petroleum, stainless steel materials (nickel and chrome), and diamonds and specialty products.
BHP Billiton also approved three key metallurgical coal projects in the Bowen Basin in Central Queensland, Australia. These projects are expected to add 4.9 million tonnes of annual mine capacity. The total outlay is $5 billion, of which BHP Billiton will contribute $2.5 billion.
Management expects that the rapid development of these projects will capture the increasing demand for hard coking coal.
Additionally, BHP Billiton will also invest $6.6 billion (total investment being $7.4 billion) to expand the company’s Western Australia Iron Ore operations. The project is expected to generate capacity in excess of 220 million tonnes per annum (mtpa), on a 100% basis, with the first flush of production expected from the new Jimblebar mine in early year 2014.
This investment is expected to develop port capacity for the company with subsequent debottlenecking which should allow BHP Billiton to fill its 240 mtpa allocation at the Port Hedland inner harbour.
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