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BHP Billiton dumps plans for $5bn coal terminal at Abbot Point

4th November 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Diversified miner BHP Billiton on Monday confirmed its earlier decision to withdraw from a coal export terminal development at Abbot Point, in Queensland.

A spokesperson for the miner told Mining Weekly Online that BHP had reached a formal agreement with the North Queensland Bulk Ports in October, to formally withdraw from the regulatory applications to develop the $5-billion terminal two (T2) development.

In August last year, BHP halted work on all its Queensland growth projects, apart from those in execution, owing to the decline in coal prices and the overall economic conditions.

This included work on the T2 development at Abbot Point and on the 250 km rail corridor from Goonyella, where BHP has several coal operations, to Abbot Point.

This decision also saw BHP halt environmental work on both the Saraji East and Red Hill greenfield operations.

However, the company spokesperson pointed out that the miner was continuing to progress with its growth projects under construction, including the $1.8-billion Caval Ridge mine and the $1.5-billion expansion of the Hay Point port.

“This expansion of the coal terminal ensures that sufficient capacity is available to meet our shipping needs,” the spokesperson said.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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