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BIL
BIBLT
BIL - BHP Billiton Finance Plc - BHP Billiton approves Caval Ridge Mine
project
BHP Billiton Finance Plc
Share code: BIL
ISIN: GB0000566504
NEWS RELEASE
Release IMMEDIATE
Time
Date 1 NOVEMBER 2011
Number 30/11
BHP BILLITON APPROVES CAVAL RIDGE MINE PROJECT
BHP Billiton today approved development of the Caval Ridge Mine project and
expansion of the Peak Downs Mine in the northern Bowen Basin in Central
Queensland, Australia. The initial project will add 8 million tonnes per year
capacity (100 per cent basis) in export metallurgical coal, with the
expectation of a rapid, low cost expansion to 10 million tonnes per year.
This additional 2 million tonnes per year will only require the addition of
mining equipment. This expansion has not yet been permitted.
The total investment in the initial project is US$4.2 billion, of which BHP
Billiton`s share is US$2.1 billion. The resource life of the initial project
is expected to be greater than 60 years1. First coal is expected in calendar
year 2014.
The new Caval Ridge Mine will have the capacity to produce 5.5 million tonnes
per year. The Peak Downs Mine will expand production by 2.5 million tonnes
per year. The investment will include construction of a new coal handling
and preparation plant at Caval Ridge to process production from the Caval
Ridge Mine and Peak Downs expansion. Coal from the Peak Downs expansion will
be transported by conveyor to the new plant. The Peak Downs Mine lies to the
immediate south of the new Caval Ridge Mine.
The Caval Ridge Mine will be an open cut dragline and truck and shovel
operation, with coal railed to the BHP Billiton Mitsubishi Alliance (BMA) Hay
Point Coal Terminal. The project has received all necessary regulatory
approvals.
BHP Billiton Metallurgical Coal President, Hubie van Dalsen, said: "This
investment in the Caval Ridge Mine was foreshadowed in March of this year
when BHP Billiton announced investments in the new 4.5 million tonne per year
Daunia mine, the life extension of the Broadmeadow mine and the 11 million
tonne per year expansion of the Hay Point Coal Terminal.
"This is a continuation of BHP Billiton`s strategy of investing in large, low
cost, expandable mines with long lives. Additional expansion projects are
being advanced to follow this investment in due course," he said.
Background notes
BMA is a 50/50 joint venture between BHP Billiton and Mitsubishi Development
Pty Ltd. BMA owns and operates seven mines in the Bowen Basin - Goonyella
Riverside, Broadmeadow, Peak Downs, Saraji, Norwich Park, Gregory Crinum and
Blackwater - together with the Hay Point Coal Terminal.
Further information on BHP Billiton can be found at: www.bhpbilliton.com
Sponsor: Absa Capital (the investment banking division of Absa Bank Limited,
affiliated with Barclays Capital)
Media Relations Investor Relations
Australia Australia
Samantha Stevens James Agar
Tel: +61 3 9609 2898 Tel: +61 3 9609 2222
Mobile: +61 400 693 915 Mobile: +61 467 807 064
email: email: James.Agar@bhpbilliton.com
Samantha.Stevens@bhpbilliton.com
Andrew Gunn
Kelly Quirke Tel: +61 3 9609 3575
Tel: +61 3 9609 2896 Mobile: +61 439 558 454
Mobile: +61 429 966 312 email: Andrew.Gunn@bhpbilliton.com
email: Kelly.Quirke@bhpbilliton.com
United Kingdom and South Africa
Fiona Martin
Tel: +61 3 9609 2211 Brendan Harris
Mobile: +61 427 777 908 Tel: +44 20 7802 4131
email: Fiona.Martin2@bhpbilliton.com Mobile: +44 7990 527 726
United Kingdom and Americas email: Brendan.Harris@bhpbilliton.com
Ruban Yogarajah Americas
Tel: US +1 713 966 2907 or
UK +44 20 7802 4033 Scott Espenshade
Mobile: UK +44 7827 082 022 Tel: +1 713 599 6431
email: Mobile: +1 713 208 8565
Ruban.Yogarajah@bhpbilliton.com email:
Scott.Espenshade@bhpbilliton.com
BHP Billiton Limited BHP Billiton Plc Registration number
ABN 49 004 028 077 3196209
Registered in Australia Registered in England and Wales
Registered Office: 180 Lonsdale Registered Office: Neathouse Place
Street London SW1V 1BH United Kingdom
Melbourne Victoria 3000 Australia Tel +44 20 7802 4000
Tel +61 1300 55 4757 Fax +44 20 7802 4111
Fax +61 3 9609 3015
Members of the BHP Billiton Group which is headquartered in Australia
1. The Resource Life is estimated from the Caval Ridge resource base
(767Mt) divided by the approved production rate of 5.5Mtpa, factored up
by coal preparation plant recovery (60%) and mining recovery (90%). The
Caval Ridge Resource is incorporated into the Peak Downs Mineral
Resource reported as of 30 June 2011 composed of: Measured Resource
697Mt; Indicated Resource 875Mt , Inferred Resource 572Mt on a 100%
basis (BHP Billiton interest is 50%) and should be read together with
and subject to, the notes set out in the FY11 Annual Report, which can
be found at www.bhpbilliton.com. This information is reported under the
`Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves, 2004` (the JORC Code) by the Competent
Persons S Martinez (MAusIMM) and J Centofanti (MAusIMM) who are employed
by BHP Billiton and have the required qualifications and experience to
estimate and report Mineral Resources under the JORC Code. The Competent
Persons verify that this report is based on and fairly reflects,the
Mineral Resource information in the supporting documentation and agree
with the form and context of the information presented.
Date: 01/11/2011 07:06:26 Produced by the JSE SENS Department.
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