BHPB approves Caval Ridge coal project

BHP Billiton has approved development of the Caval Ridge mine project as well as an expansion of the Peak Downs mine in the northern Bowen Basin in Central Queensland, Australia. The initial project will add 8 Mt/y capacity (100% basis) in export metallurgical coal, with the expectation of a rapid, low cost expansion to 10 Mt/y. This additional 2 Mt/y will only require the addition of mining equipment. This expansion has not yet been permitted. The total investment in the initial project is $4.2 billion, of which BHP Billiton’s share is $2.1 billion. The resource life of the initial project is expected to be greater than 60 years with the first coal expected to be produced in 2014. (more…)