Diversified miners BHP Billiton, Anglo American and Xstrata have given the go-ahead for a $1.3-billion expansion at the Cerrejon coal mine, to increase the output to 40-million tons a year by 2015.
BHP, Anglo and Xstrata own equal shares in the Colombian mine and would each put up $437-million for the expansion.
The expansion project, known as the P40 project, would enable Cerrejon’s saleable coal production to increase by eight-million tons a year. The expansion would increase the parties’ equal share in production and sales to 13.3-million tons each, from 10.7-million tons each.
Construction is set to start later this year, and will be complete by 2013.
“Today’s announcement highlights our commitment to invest in growth throughout the cycle and to continue to produce at maximum volumes to take advantage of the strong demand for energy coal,” said BHP energy coal president Jimmy Wilson.
The approved project would require the expansion of the mine, coal handling facilities and the port, inclusive of an additional loading berth. The expansion would also create additional employment for both Cerrejon direct employees and contractors, said joint venture partner Xstrata.
The Cerrejon project is considered to be one of the largest coal deposits in the world and has a resource base of around five-billion tons, of which 2.1-billion tons is currently classified as measured and indicated.
豫公网安备41010502003434号