BHP announces $320m NSW mine expansion

BHP Billiton Ltd's Mt Arthur coal mine is set to expand, as the mining company looks
to take advantage of rising prices.

On Friday BHP Billiton said the coal mine would be expanded to increase production
of saleable thermal coal from 11.5 million tonnes per annum (mtpa) to about 15mtpa.
The 670-strong workforce at the mine, near Muswellbrook in the Upper Hunter Valley
of New South Wales, is set to expand by about 190 employees.
The newly expanded mine, known as the MAC20 Project, is scheduled to begin
operations in the first half of calendar year 2011 at an estimated capital
investment of $US260 million ($A319.74 million) the miner said.
Spot prices for thermal coal shipped from Newcastle have been rising in recent
months, after collapsing from a high above $US192 per tonne in July 2008.
The commodity hit a low of $US65.36 per tonne in March 2009, but has since
rebounded, and was worth $US76.48 per tonne on the spot market last month.
"The MAC20 Project approval demonstrates BHP Billiton's commitment to expanding its
thermal coal business in the region," said Dave Murray, the company's president of
energy coal.
"This is a great next step in the mine's development," Mr Murray said.
NSW government approval to expand the mine's production capacity was granted under
the existing development consent, BHP Billiton said.
Thermal coal is used primarily for power generation.
Shares in BHP Billiton closed up 41 cents at $37.51.