The Caval Ridge open cut project is expected to produce 5.5 million tonnes per annum and generate an extra 2.5Mtpa from BHP Mitsubishi Alliance’s Peak Downs mine.
The HPCT expansion will ramp up throughput capacity from 44Mtpa to 55Mtpa.
“Subject to regulatory approvals, final approval for the development of these projects is expected when the feasibility studies are completed, estimated to be the third quarter of 2011,” BHP said.
The ongoing feasibility work means construction will not take place in 2010 as previously flagged.
In mid-2009 the major miner pushed back the Caval Ridge start-up date two years with first coal to be railed to HPCT in 2013.
Queensland Resources Council chief executive Michael Roche said BMA’s extra 8Mtpa of coking coal production and expansion of its privately owned port facilities were a substantial vote of confidence in the industry and the state economy.
“This level of new investment by Australia’s biggest coal miner confirms growing confidence in the global economy’s recovery and the future of coal,” he said.
“It also adds weight to forecasts that coal mining will be among the industries requiring an additional 23,000 new employees by 2020.”
Caval Ridge is expected to have a mine life of 30 years with operations slated to employ 495, while construction has been previously estimated to employ 1200 over a 22-month construction period.
Both Caval Ridge and the HPCT are owned by BMA, a 50:50 BHP and Mitsubishi Development joint venture.
BHP’s funding of $267 million accounts for its share of the capital expenditure.
Shares in BHP closed down 21c to $43.44 yesterday.
