Mining giants in US$1.3bn Colombia expansion
SYDNEY: Mining giants BHP Billiton, Anglo American and Xstrata said Thursday they plan a US$1.3 billion expansion of their joint venture Cerrejon coal mine in Colombia.
Each will contribute one third of the total cost, BHP announced in a statement, adding that it will boost saleable thermal coal production by eight million tonnes per annum (Mtpa) to about 40mtpa.
BHP Billiton Energy Coal president Jimmy Wilson said the company was committed to continuing to produce as much thermal coal as possible.
"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," he said.
Construction will begin this year with completion expected in 2013. Ramp-up to expanded capacity of 40mtpa is seen by the end of 2015.
The expansion will include a second berth and dual quadrant shiploader at Cerrejon's 100 percent owned and operated Puerto Bolivar, along with mine, rail and associated supply chain infrastructure.
Copyright AFP (Agence France-Presse), 2011
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