PERTH (miningweekly.com) − Mining giant BHP Billiton and its joint venture partner, Mitsubishi Development, on Tuesday approved $4.2-billion for the development of the Caval Ridge coal mine and the expansion of Peak Downs, in the northern Bowen basin in Queensland.

BHP and Mitsubishi would each contribute $2.1-billion to add eight-million tons a year of new export metallurgical coal capacity, which could be expanded at a later stage.

The Caval Ridge mine would have the capacity to produce some 5.5-million tons a year, while Peak Down mines would expand production by 2.5-million tons a year.

The first coal is expected in 2014.

The investment would include the construction of a new coal handling and preparation plant at Caval Ridge to process production from the mine, as well as from the Peak Down expansion.

Coal from the Peak Down expansion would be transported by conveyor to the new plant, as the project lies to the immediate south of the new Caval Ridge mine.

The Caval Ridge mine would be an opencut dragline and truck and shovel operation, with coal railed to the BHP Billiton Mitsubishi Alliance Hay Point coal terminal.

The project has already received all the necessary regulatory approvals.

“This investment in the Caval Ridge mine was foreshadowed in March of this year, when BHP announced investments in the new 4.5-million–ton-a-year Daunia mine, the life extension of the Broadmeadow mine, and the 11-million-ton-a-year expansion of the Hay Point coal terminal,” said BHP metallurgical coal president Hubie van Dalsen.

The Caval Ridge and Peak Down project could be expanded to ten-million tons a year by adding new mining equipment. The expansion has not yet been permitted.

Van Dalsen said that additional expansion projects were being advanced to follow this investment, in “due course”.

In March, BHP earmarked $9.5-billion to expand its iron-ore and coal operations in Australia, with the miner and its partner jointly investing $5-billion into three new Queensland coal operations.

Meanwhile, Queensland Premier Anna Bligh has welcomed the investment decision, saying it was a boost to the state’s jobs and economy.

"It will create around 1 200 construction jobs and 495 ongoing operational jobs for the next 30 years. That's a jobs and investment guarantee for the next 30 years,” Bligh said.

The investment approval comes after the Queensland Coordinator-General conditionally approved the development and expansion of the two operations, following an 18-month environmental-impact assessment.

Bligh said that the environmental restrictions placed on the project were the most detailed and prescriptive set of restrictions for a coal mine in Queensland, to date.

“The conditions set clear requirements and procedures with respect to air quality monitoring, dust and water management, community consultation and the mitigation of potential social impacts of the mine, as well as requirements for extensive vegetation offsets and infrastructure agreements on road impacts, particularly the Peak Downs highway,” Bligh said.
 

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