|
BIL
BIBLT
BIL - BHP Billiton Plc - Approves Douglas-Middelburg Optimisation Project
BHP BILLITON Plc
Share code: BIL
ISIN: GB000566504
Date:29 February 2008
Number:09/08
BHP BILLITON APPROVES DOUGLAS-MIDDELBURG OPTIMISATION PROJECT
BHP Billiton today announced approval of the Douglas-Middelburg Optimisation
(DMO) Project, with an expected capital investment of US$975 million.
The DMO project scope includes utilising reserves across the Douglas and
Middelburg Mine Services (MMS) collieries and development of new mining areas
with low strip ratio coal, with product being fed into a new 14 Mtpa coal
processing plant. The new coal processing plant will replace the existing, less
efficient washing plant at Douglas. The project will enable BHP Billiton to
maintain energy coal exports from the combined Douglas Colliery and MMS at
around current levels (approximately 9.5 Mtpa BHP Billiton share) whilst also
fulfilling domestic contractual commitments.
First coal from the new mining areas is expected in mid-2008 and the new plant
is expected to receive coal in mid-2010. The anticipated life of mining
operations is to 2034.
The Douglas and MMS collieries are currently owned through the Douglas Tavistock
Joint Venture (DTJV), in which BHP Billiton has an 84% share and Xstrata has a
16% share. To facilitate the DMO project, which is to be developed and owned
solely by BHP Billiton, the DTJV will be restructured with each of the joint
venture partners being allocated coal resources according to their ownership
share.
A number of regulatory approvals are being sought to give effect to this
restructure.
President BHP Billiton Coal, Dave Murray said: "Approval of the DMO project is a
core component of BHP Billiton`s coal strategy and is in keeping with BHP
Billiton`s focus on operating low-cost, long-life assets. This project allows us
to realise maximum value from these assets by optimising the existing reserves
at Douglas and MMS and enabling us to maintain exports through to 2034. With the
recent approval of the US$450M investment in the Klipspruit Project, our South
African coal operations will now comprise of three world class assets, namely
Middelburg Mine Services (which now incorporates the resources of Douglas
Colliery), Khutala Colliery and Klipspruit Colliery."
****
Further information on BHP Billiton can be found on our Internet site:
www.bhpbilliton.com
Australia United Kingdom
Samantha Evans, Media Relations Andre Liebenberg, Investor Relations
Tel: +61 3 9609 2898 Mobile: +61 400 Tel: +44 20 7802 4131 Mobile: +44
693 915 7920 236 974
Email: Samantha.Evans@bhpbilliton.com Email:Andre.Liebenberg@bhpbilliton.c
om
Don Carroll, Investor Relations Illtud Harri, Media Relations
Tel: +61 3 9609 2686 Mobile: +61 417 Tel: +44 20 7802 4195 Mobile: +44
591 938 7920 237 246
Email: Don.A.Carroll@bhpbilliton.com Email: Illtud.Harri@bhpbilliton.com
South Africa
United StatesTracey Whitehead, Investor Alison GIlbert, Investor Relations
& Media Relations Tel: SA +27 11 376 2121 or UK +44 20
Tel: US +1 713 599 6100 or UK +44 20 7802 4183Mobile: +44 7769 936
7802 4031Mobile: +44 7917 648 093 227Email:
Email:Tracey.Whitehead@bhpbilliton.com Alison.Gilbert@bhpbilliton.com
Date: 03/03/2008 08:13:08 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS. |
|
