Recently, BHP Billiton Ltd (BHP) has approved US$367 million more for the third stage of development of Newcastle Coal Infrastructure Group’s (NCIG) coal handling operations in Newcastle, Australia.
Newcastle is home to the world’s biggest export coal port, with the port expansion project slated to increase total capacity at the coal terminal from 53 million tonnes per annum (mtpa) to 66mtpa. The full capacity operation of the terminal for the next 12 months is anticipated to bring the first coal on the new ship loader by financial year 2014.
Hunter Valley Energy Coal, BHP Billiton’s wholly owned subsidiary, is a 35.5% shareholder in the holding company of NCIG. The expansion project in expected to increase BHP Billiton’s allocation at NCIG to 19.2mtpa in order to support the future expansions of the Mt Arthur Coal mine in the Hunter Valley. Mount Arthur project currently produces 15 million tons a year with expansion plans under way to increase production to 24 million tons a year.
Of late, BHP Billiton approved $US9.8 billion worth of expansion projects for its iron ore and coal operations in six-month period ending June 30. This included increasing coal production by 4 million tonnes to approximately 24 mtpa at Hunter Valley Energy Coal in NSW.
BHP Billiton is one of the world’s largest diversified resource companies operating in mineral exploration, production and processing, oil and gas exploration and development, and steel production and merchandising. The merger, as a part of the company’s key investment strategies, is expected to sustain the company’s commitment to its long-term growth. The company competes directly with its peers, such as Alcoa Inc (AA), Vale S.A (VALE).
