BHP Billiton approves Caval Ridge mine project

BHP Billiton has approved development of the Caval Ridge mine project and expansion of the Peak Downs mine in the northern Bowen Basin in central Queensland, Australia. The initial project will add 8Mt/y capacity in export metallurgical coal, with the expectation of a rapid, low cost expansion to 10Mt/y.
The total investment in the initial project is US$4.2 billion, of which BHP Billiton’s share is US$2.1 billion. The resource life of the initial project is expected to be greater than 60 years, and first coal is expected in 2014.

The new Caval Ridge mine will have the capacity to product 5.5Mt/y, and the Peak Downs mine will expand production by 2.5Mt/y. The investment will include construction of a new coal handling and preparation plant at Caval Ridge to process production from the Caval Ridge mine and Peak Downs expansion. Coal from the expansion at Peak Downs, which lies to the immediate south of Caval Ridge, will be transported by conveyor to the new plant.

The Caval Ridge mine will be an open cut dragline and truck and shovel operation, with coal railed to the BHP Billiton Mitsubishi Alliance (BMA) Hay Point Coal Terminal.

Hubie van Dalsen, metallurgical coal president at BHP Billiton, said: “This is a continuation of BHP Billiton’s strategy of investing in large, low cost, expandable mines with long lives. Additional expansion projects are being advanced to follow this investment in due course.”