Vote of confidence in coal future

QRC Chief Executive Michael Roche said the addition of up to 8 million tonnes per annum of coking coal production and the expansion of privately-owned port facilities to accommodate increased exports were a substantial vote of confidence in the industry and the Queensland economy.
“BHP-Billiton Mitsubishi Alliance (BMA) is Queensland and Australia’s leading producer of quality coking coal for the global steelmaking sector,” Roche said.
BHP Billiton has announced US$267 million (BHP Billiton share) of pre-approval capital expenditure to accelerate the development of the Caval Ridge and Hay Point Coal Terminal Stage 3 Expansion (HPX3) projects. The funds will be used for feasibility studies, the procurement of long-lead time items and initial project activities.
“On the day that the coal industry’s outstanding export contribution has been recognised by the federal government, this level of new investment by Australia’s biggest coal miner confirms growing confidence in global economy’s recovery and the future of coal.
“It also adds weight to forecasts that coal mining will be among the industries requiring an additional 23,000 new employees by 2020,” Roche said.
The Caval Ridge project is expected to produce an estimated 5.5 million tonnes per annum (mtpa) of high quality coking coal from the Caval Ridge mine and an incremental 2.5 mtpa from the Peak Downs mine (100 per cent basis). The HPX3 project is expected to increase the annual capacity of the Hay Point Coal Terminal from 44 mtpa to 55 mtpa (100 per cent basis). 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.
The Caval Ridge mine, Peak Downs mine and Hay Point Coal Terminal are operations of the BHP Billiton Mitsubishi Alliance (BMA), a 50:50 joint venture between BHP Billiton and Mitsubishi Development Pty Ltd.

BHP Billiton quarterly exploration report
Headlining BHP Billiton’s production and development report for the quarter ended December 2009, was first production from its Western Australian Iron Ore Rapid Growth Project 4 (RGP4). This was achieved ahead of schedule and within budget, according to the miner.
The group’s Klipspruit energy coal expansion project in South Africa is also essentially complete and has delivered first coal.
The approval of the Antamina Expansion project (base metals) in Peru was announced on January 5th, and BHP’s pre-approval capital expenditure to accelerate the development of the Caval Ridge and Hay Point Coal Terminal Stage 3 Expansion was announced shortly afterwards.
The company also announced approval for US$240 million (BHP Billiton share 100 per cent) of capital expenditure to support the development of the first stages of the Jansen Potash Project in Saskatchewan, Canada.
This pre-approval expenditure will facilitate the early stage work for the establishment of the production and service shafts. The Jansen project is being designed to ultimately produce approximately 8 million tonnes per annum of agricultural grade potash, and represents BHP Billiton's first production of potash.