JOHANNESBURG (miningweekly.com) – After five years of development, coal production has started at the Rio Tinto-managed $2-billion Kestrel South mine extension, in central Queensland.

Construction of the mine extension, which started in August 2008 and would be fully complete by September, would add 20 years to the life of the Kestrel underground coal mine, which Rio Tinto managed on behalf of joint venture partners Queensland Coal and Mitsui Kestrel Coal Investment.

The extension project involved the construction of a new longwall; various infrastructure, including a 7.9 km overland conveyor; and upgrades to the existing coal handling and preparation plant.

This would allow a new series of underground panels to be mined to the south of the existing operation.

Kestrel Mine general manager of operations John Coughlan said the operation would process high-quality coking coal for export using the longwall method, and expected to see the first shipment of coal from the new area of the mine leaving Australia in the coming weeks.

Coal would be transported the 300 km from the mine to the Port of Gladstone using the 7.9 km overland conveyor, which carried 3 500 t/h of product.

Kestrel mine’s main export customers were based in Japan, Korea, Taiwan, Europe, India and China.

“In the next year and a half, we’ll see a gradual transition of production as our existing operation, known as Kestrel North, winds down and the new Kestrel South operation ramps up. Kestrel South is expected to reach full capacity by the end of 2014 and produce an average of 5.7-million tonnes a year over the next 20 years,” Coughlan commented.

He added that the new 375 m longwall, which was fully assembled for testing on the surface before being taken apart to go underground, would deliver a range of safety, automation and production improvements.

“Not only will this 20-year extension provide a secure future for our workforce of more than 400 employees and long-term supply for our customers, it will also allow Kestrel mine to continue its significant contribution to the community.”

Kestrel South has around 115-million tonnes in coal reserves, providing options for ongoing mining.