BHP Billiton to invest in replacement Aussie coal mine

The board of mining titan BHP Billiton has given the go-ahead to a massive investment on its coal operations in New South Wales, Australia.

The group is spending US$845m to sustain operations at Illawarra Coal by establishing a replacement mining area at the Appin Mine.

The replacement area will have a production capacity of 3.5m tonnes per year of metallurgical coal and will sustain Illawarra Coal's production capacity at 9m tonnes per year. Appin Area 9 will be operational in 2016 and will replace production at the West Cliff Mine.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

The project, which has received all the required regulatory approvals, includes roadway development, new ventilation infrastructure, new and reconfigured conveyors and other mine services.

JH