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BHP BILLITON PLC - BHP BILLITON TO INCREASE METALLURGICAL COAL CAPACITY
TO 100 MILLION TONNES PER ANNUM
BHP Billiton Plc
Registration number 3196209
JSE Share Code: BIL
ISIN: GB000056650
NEWS RELEASE
Date 1 September 2004
BHP BILLITON TO INCREASE METALLURGICAL COAL CAPACITY
TO 100 MILLION TONNES PER ANNUM
BHP Billiton today announced its intention to increase metallurgical
coal production capacity to around 100 million tonnes per annum (100
per cent basis) by 2010*.
The increase in capacity will be achieved through high value
incremental expansions of the BHP Billiton Mitsubishi Alliance (BMA)
and BHP Mitsui Coal Pty Ltd (BMC) coal operations in Queensland,
Australia and potential new developments such as the Maruwai
prospect in Kalimantan.
Options for expanding BHP Billiton`s Illawarra coal business in New
South Wales, Australia are also under consideration.
Group President Carbon Steel Materials Bob Kirkby said the change in
the rate of growth in the global steel industry in recent years had
created a significant increase in demand for steel making raw
materials, including seaborne metallurgical coal.
`BHP Billiton and its partners are ideally placed to capture a
significant share of the forecast growth in the metallurgical coal
market through the addition of low cost, high value production
capacity,` he said.
`Our resources and infrastructure are second to none, and the growth
strategy will build on the incremental expansion projects that are
already underway in Queensland and New South Wales.`
In March this year BHP Billiton outlined plans to increase capacity
at the Queensland coal operations from 52Mtpa to 57Mtpa by mid 2005.
This project included the purchase of additional mining equipment at
several mines, upgrades to the coal preparation plants at the Saraji
and Peak Downs mines and the awarding of 132 million bank cubic
metres (Mbcm) of overburden stripping contracts.
Mr Kirkby said the next stage of the Queensland coal expansion
program had also been approved as part of the overall growth
strategy. The program will increase production capacity to 59Mtpa by
the second half of 2006.
Capital expenditure for this next stage is expected to be US$175
million (BHP Billiton share US$87.5 million) and includes
increasing throughput capacity at the Hay Point Coal Terminal from
34Mtpa to 40Mtpa and the acquisition of additional stripping
equipment and mining equipment.
In order to facilitate the increased production, 32Mbcm of
overburden stripping contracts will be let at the Saraji mine.
*Production at the metallurgical coal mines owned by BHP Billiton,
BMA and BMC in FY2004 was 58 Mtpa (BHP Billiton share 34 million
tonnes, excluding 20 per cent outside equity interest in BMC). On
completion of the expansion projects in 2010, BHP Billiton`s
attributable production capacity is expected to rise to in excess of
60 Mtpa.
****
Further information can be found on our Internet site:
http://www.bhpbilliton.com
Australia United Kingdom
Jane Belcher, Investor Mark Lidiard, Investor &
Relations Media Relations
Tel: + 61 3 9609 3952 Tel: +44 20 7747 3956
Mobile: +61 417 031 653 email:
email: Mark.Lidiard@bhpbilliton.com
Jane.H.Belcher@bhpbilliton.com
Tania Price, Media Relations Ariane Gentil, Media
Tel: +61 3 9609 3815 Relations
Mobile: +61 419 152 780 Tel: +44 20 7802 4177
email: Mobile: +44 78 81 51 8715
Tania.Price@bhpbilliton.com email:
Ariane.Gentil@bhpbilliton.co
United States m
Francis McAllister, Investor
Relations South Africa
Tel: +1 713 961 8625 Michael Campbell, Investor &
Mobile: +1 713 480 3699 Media Relations
email: Tel: +27 11 376 3360
Francis.R.McAllister@bhpbillito Mobile: +27 82 458 2587
n.com email:
Michael.J.Campbell@bhpbillit
on.com
Date: 01/09/2004 08:02:55 AM Produced by the JSE SENS Department |
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