JOHANNESBURG (miningweekly.com) – Diversified giant BHP Billiton on Monday approved capital expenditure of $267-million to accelerate the development of a coal projects in Queensland.

BHP Billiton would use the funds for development of the Caval Ridge project and Hay Point Coal Terminal expansion.

The Caval Ridge project would produce 5,5-million tons a year of coking coal from the Caval Ridge mine and an incremental 2,5-million tons a year from the Peak Downs mine.

The terminal expansion project is expected to increase the annual capacity of the Hay Point Coal Terminal from 44-million tons a year to 55-million tons a year.

The $267-million would be used for feasibility studies, the procurement of long-lead time items and initial project activities, BHP, which is developing the projects in a partnership with Mitsubishi, said in a statement.

BHP noted that subject to regulatory approvals, final approval for the development of these projects was expected when the feasibility studies were completed in 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, a 50:50 joint venture between BHP Billiton and Mitsubishi Development.

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