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BHP Billiton announces Hunter Valley Energy Coal expansion

BHP Billiton has unveiled plans to expand its Australian operations.

25 March 2011

London-based BHP Billiton has announced the expansion of its Hunter Valley Energy Coal operations in Australia.

In a move which could prompt a need for business negotiations, the global mining firm has revealed it has approved a $400 million (£181 million) investment in its RX1 Project in New South Wales.

"[It] will enable Mt Arthur Coal's run-of-mine thermal coal production to increase by four million tonnes per annum [mtpa], to approximately 24 mtpa," the company revealed.

BHP Billiton claimed that RX1 is forecast to deliver its first production during the second half of 2013 and will generate around 300 new positions.

Commenting on the move, energy coal president for the company Jimmy Wilson claimed the emergence of demand for coal in key markets will enable his organisation to quickly get its product to market.

"The RX1 Project will take advantage of existing port capacity and future expansion options will be supported by Mt Arthur Coal’s large, low-cost resource," he said.

BHP Billiton was formed with the help of business negotiations that saw natural resource company BHP join with global mining corporation Billiton to form a powerful resources industry firm.

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