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.

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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