Newly-merged BHP Billiton has announced the first in a spate of
large-scale mining projects – between now and 2005 and
collectively valued at $8-billion – planned to entrench its
position as a leading low-cost producer of coal, iron-ore,
titanium, diamonds, nickel and silver, among other things.
The company said this month that it would start a $411-million or
about R3,3-billion project to develop the Mount Arthur North
open-cut thermal coal-mine in the Upper Hunter Valley, in New South
Wales, Australia. The project represents a high-value brownfstamp mill sale south africaield
expansion of the company’s existing Bayswater mine. It forms a key
component of BHP Billiton’s thermal coal strategy, designed to
expand production from high-margin Australian resources to meet
growing regional demand for steaming coal. „The development of this
world-class rewest africa cement plant mechanical jobssource enhances our position to capture an increased
share of the assessed strong growth in Asian energy demand in
general, and seaborne traded thermal coal demand in particular,“
says BHP Billiton Thermal Coal president Mike Oppenheimer.
Furtmilling equipment used in recycled crushed aggregatehermore, the development contributes to the company’s intention
to have multisourcing options, in addition to its South African,
Colombian and Indonesian production, for the supply of coal into
regional markets. The new mine will be able to produce up to
15-million tons of raw coal a year. Production of 6,3-million tons
of saleable coal, from the Bayswater/Mount Arthur North complex, is
expected to be achieved in financial year 2003. Full production
from Mount Arthur North of 12,1-million tons a year of saleable
coal is expected by 2006. A portion of the initial production will
be supplied under contract for five years to Macquarie Generation
for local power station electricity generation, delivered by an
existing overland conveyor. Production costs at Mount Arthur North
are expected to be sustainable in the lowest quartile. The
development displays robust project economics and represents an
important increment in the value of BHP Billiton’s portfolio of
thermal coal assets. The Mount Arthur North coal resource is the
last remaining significant open-cut resource in the Hunter Valley
to receive development consent. Mount Arthur North contains
estimated coal resources of 812-million tons – 721-million
tons measured and 91-million tons indicated. The mine development
is adjacent to Bayswater Colliery and the two resources will be
mined as one large, flexible operation. Synergies will be captured
through combined management, combined mine planning, sharing of
infrastructure, sharing of equipment and joint marketing. Full
capacity of the combined operations is expected to be up to
14,5-million tons of saleable coal a year. The stripping ratio for
the Mount Arthur North development is about 4:1 and is expected to
be constant over the mine’s life.