BHP to invest billions to expand iron ore and coal operations in Australia

BHP Billiton Ltd on Friday said it will spend almost 10 billion U.S. dollars of investment to expand its coal and iron ore operations in Australia.


The world's biggest resource company will spend 6.6 billion U.S. dollars on Western Australia iron ore operations.


Of that amount, 3.44 billion U.S. dollars will go toward developing the Western Australia's Jimblebar mine and rail links. The rest of the money will be spent on further developing Port Hedland with two additional berths, shiploaders and other equipment and on port and rail facilities for blending ore.


"Our intent with these projects is to develop port capacity that, with subsequent de-bottlenecking, will allow us to fill our 240 million tons per annum allocation in the Port Hedland inner harbor," BHP Billiton's president of iron ore, Ian Ashby said in a statement released on Friday.


BHP Billiton said first production from the Jimblebar mine was expected in early calendar 2014.


Meanwhile, the company will also spend 2.5 billion U.S. dollars on three coking coal projects in the Bowen Basin in central Queensland.


The money will be spent on the new Daunia mine, which will be able to produce 4.5 million tons a year of export metallurgical coal after first output begins in 2013, as well as on expanding the life of the Broadmeadow mine by another 21 years.


The company said Hay Point Coal Terminal, owned by a joint venture between BHP and Mitsubishi Development Pty. Ltd., will also increase its capacity to 55 million tons a year from 44 million currently.


"Our strategy is to rapidly progress development of these projects to capture the increasing demand we see for hard coking coal," BHP Billiton metallurgical coal president Hubie van Dalsen said in a statement released on Friday.


In New South Wales, BHP Billiton will spend 400 million U.S. dollars on the expansion of its Hunter Valley energy coal unit, which will enable production at Mt Arthur Coal to increase by four million tonnes to about 24 million tonnes a year.


"The emergence of demand for coal in the key growth markets allows us to get product to market quickly, ahead of further coal preparation plant expansions," BHP Billiton Energy Coal President Jimmy Wilson said.


Earlier in February, BHP Billiton reported a recording 10.524 billion U.S. dollars for the first half net profit between June to December 31, 2010.


Supported by rising demand for metals and minerals from emerging markets, BHP Billiton in February said it expected to spend 80 billion U.S. dollars by 2015 on mines and oil fields. ditem.
(Source:http://news.xinhuanet.com)