HomeEnergy MineralsXstrata approves US$1.36 million investment in Australia

Xstrata approves US$1.36 million investment in Australia

The Ravensworth coal
project in Australia
Sydney, Australia — MININGREVIEW.COM — 07 December 2010 – The Xstrata plc board has approved the development of the Ravensworth North open cut mine in the Upper Hunter Valley of New South Wales, in Australia for a total investment of US$1.36 billion (R9.5 billion).

Situated within the existing Cumnock Coal and Ravensworth complex, the Ravensworth North open cut mine will produce 8Mtpa of export thermal and semi soft coking coal at full production, with a mine life of approximately 26 years. The project area encompasses the existing Xstrata Coal Ravensworth and Cumnock Operations.

In a statement issued here the company said that construction of the mine was expected to commence in early 2011, subject to the receipt of development consent by the New South Wales Department of Planning, and Australian Government environmental approvals. First coal was expected to be delivered in July 2012.

It added that approximately 250 new jobs would be created during construction of the Ravensworth North project, with 550 fulltime jobs expected to be created during ongoing operations.

Xstrata Coal chief executive Peter Freyberg said, “Ravensworth North will play a significant role in the continued growth of our New South Wales operations. The mine will be the culmination of Xstrata Coal’s long term strategy for the area, and combines its suite of mineral tenements and assets to realise the considerable synergies on offer from existing operations.

Xstrata CEO Mick Davis said “We are continuing the development of 20 significant projects in 2010, totalling US$14billion (R98 billion), putting us on track to take advantage of strong commodity markets, and to deliver against our objective to grow our volumes by 50% by 2014 and reduce our costs by over 20% over the same period.”