BHP approves $4.2 billion Mitsubishi coal venture

The world's biggest miner BHP Billiton Tuesday approved the expansion and development of its coal assets in Australia's Bowen Basin as part of a US $4.2 billion venture with Japan's Mitsubishi Development. The development of the Caval Ridge Mine project and expansion of the Peak Downs Mine, both in Queensland state, could initially add eight million tonnes per year in export metallurgical coal, BHP said.
"The total investment in the initial project is US $4.2 billion, of which BHP Billiton's share is US $2.1 billion," the company said in a statement. The initial project's resource life is expected to be greater than 60 years, with the first coal forecast for 2014. "This is a continuation of BHP Billiton's strategy of investing in large, low cost, expandable mines with long lives," BHP Billiton metallurgical coal president Hubie van Dalsen said.