Rio launches $2bn Kestrel extension
PERTH (miningweekly.com) – Diversified miner Rio Tinto on Tuesday officially opened the $2-billion extension of its Kestrel coal mine, in central Queensland.
The extension would add 20 years to the life of the mine and increase hard coking coal production to about six-million tonnes a year. The mine started production in July this year.
The mine includes two declines, a new 400 m longwall, infrastructure and upgrades to the existing coal handling and preparation plant. The extension would allow a new series of underground panels to be mined to the south of the existing operation.
The new operation was expected to reach full capacity by the end of 2014, as the existing mine ramped down. The mine would operate until 2032, but has some 115-million tonnes of coal in reserve, providing options for ongoing mining activities.
Queensland Treasurer Tim Nicholls on Tuesday noted that coal continued to play a vital role in the state’s economy, and welcomed what he termed a “long-term commitment” by Rio.
Rio Tinto energy chief executive Harry Kenyon-Slaney said that the extension had delivered one of the most advanced and sophisticated underground coking coal operations built in Australia.
“It is equipped with a new level of automation that will deliver significant safety and production improvements. I look forward to seeing Kestrel mine continue to lead the way in improving the competitiveness of our Australian coal business while providing benefits for the state.”
Rio manages Kestrel on behalf of joint venture partners Queensland Coal and Mitsui Kestrel Coal Investment.
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