BHP Billiton has approved three key metallurgical coal projects in the Bowen Basin in Central Queensland, Australia for which it will invest $2.5bn of the total investment of $5bn.
BHP Billiton will spend $800m for the development of the new Daunia mine, which will have the capacity to produce 4.5Mtpa of export metallurgical coal with first coal expected in 2013.
The firm will spend $450m to extend the life of the Broadmeadow mine by 21 years and increase the productive capacity to a total of 4.8Mtpa to be completed in 2013.
A further investment of $1.25bn will be made for the stage three expansion of the Hay Point coal terminal, to increase the capacity to 55Mtpa.
The investment will also cover replacement of the existing jetty to increase its ability to withstand high seas and winds and addition of new third berth, trestle, surge bins and out-loading conveyors.