Xstrata (LON:XTA) has green lighted a US$1.36 billion development project to build a new coal mine in Australia.
The Ravensworth North open cut mine, will be developed within the existing Cumnock Coal and Ravensworth complex in the Upper Hunter Valley of New South Wales.
It will produce 8 million tonnes of export thermal and semi soft coking coal each year, for a 26 year mine life.
Construction will start in early 2011 and the first coal is expected to be delivered in July 2012.
"Ravensworth North will play a significant role in the continued growth of our New South Wales operations,” said Peter Freyberg, chief executive of Xtrata Coal.
“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.”
Meanwhile group chief executive Mick Davis highlighted that Ravensworth North is ‘yet another world-class project in Xstrata's prolific organic growth programme’.
“We are continuing the development of 20 significant projects in 2010, totalling $14bn, putting us on track to take advantage of strong commodity markets and deliver against our objective to grow our volumes by 50% by 2014.”