In an investor and analyst seminar in London on Wednesday, director of operations Peter Freyberg said while managing $3 billion in projects, Xstrata Coal would add 40Mt of managed capacity over the next three to five years, which would be partially offset by 10Mt per annum capacity depletion.
Already the world's largest exporter of thermal coal, chief executive Peter Coates said in 2006 Xstrata's worldwide operations produced 91.3Mt.
Of that, 36.9Mt (5.9Mt coking coal, 31Mt thermal coal) was produced in New South Wales and 24.4Mt (10.1Mt coking, 14.3Mt thermal) was produced in Queensland.
The company's South African operations were also a big producer with 20.5Mt, and the company's Americas operations added 9.5Mt.
Growth in Queensland over the coming years will come from Xstrata's Wandoan project in the Surat Basin. The $1.2 billion mine, which also encompasses the Surat Basin "missing link" rail project, is expected to produce 15Mtpa by 2011. The opencut mine has a mine life of 30 years.
The Aquila underground mine is expected to start up in 2015, and will add 1.7Mtpa to Xstrata's output.
Also on the agenda is the Cook North coking coal project, as well as the Oaky Creek longwall, Sarum and Pentland projects.
New South Wales growth will come from a large number of projects with Glendell set to ramp up in the second quarter of next year. This will be followed by an expansion project which will lift production from 5Mtpa to 8.5Mtpa by 2010.
The Liddel project will ramp up in 2008, with further expansion in 2010 increasing production by 1.6Mtpa to 4.8Mtpa by 2010.
The South Blakefield longwall will replace Xstrata's crown longwall jewel, Beltana, in 2010. Xstrata said it would order a new 400m wide longwall for South Blakefield by January 2008.
At the Ulan longwall, the company said it planned to increase production from 3.6Mtpa to 6.6Mtpa by 2010.
It said development was on target for 20km per annum, a significant lift from 14km previously recorded.
It is also carrying out pre-feasibility work on a second longwall for the Ulan West area. Ulan West is expected to commence production in 2012.
Looking further ahead, in 2011 Xstrata expects the start-up of its Emu Creek and United extensions, and the following year the ramp-up of the Ulan Waratah open cut.
In 2016 the Bulga underground No. 2 will come online.
Freyberg was positive in his outlook for coal, pointing to the drivers of surging Asian economic growth and coal retaining its status as the lowest cost fuel alternative.
Growth in Asia is being driven by urbanisation in China and India, industrialisation of South-East Asia and the continuing growth of Korea and Taiwan.
This will be coupled with fuel switching in South America, coal source diversification in the US, EU, China and India, and restricted Russian exports to Europe.
