ENERGY INCREASE: BHP records increased energy coal production by four million tonnes per annum to about 24 million tonnes per annum at its Hunter Valley Energy Coal in NSW.
MELBOURNE: BHP Billiton Ltd (BHP) has announced a nearly US$10 billion expansion to its iron ore and coal operations in Australia.
The world’s biggest resource company is cashed up and will spend US$6.6 billion in an iron ore project expansion in Western Australia, US$2.5 billion to expand three metallurgical coal projects in Queensland and US$400 million on an energy coal project in New South Wales (NSW), the Australian Associated Press reported.
The company reported a record US$10.5 billion first half net profit last month.
Chief executive of ferrous and coal, Marcus Randolph, said the company was confident about continued demand from emerging Asian markets.
“In all three of these businesses we have large, high quality resource bases that are close to existing infrastructure and our customers,” he told a media briefing.
“In energy coal, increased demand for seaborne thermal coal in India and east Asia provides an opportunity for us to accelerate growth in Mt Arthur’s (NSW) coal run of mine production.” The company will also increase energy coal production by four million tonnes per annum to about 24 million tonnes per annum at its Hunter Valley Energy Coal in NSW. — Bernama