Bowen Basin Growth (BBCG) Project

Environmental approval was granted this week by the Queensland Coordinator-General for the new Duania coal mine near Moranbah, in the Bowen Basin.

BHP Billiton Mitsubishi Alliance (BMA) Coal Operations plans to produce 4 million tonnes per annum of high-quality coking coal at the Daunia mine over 21 years.

Construction of the $625m project is expected to begin as early as 2010 and operations are expected to start in 2011m, generating 450 construction jobs and 300 permanent jobs.

The Daunia project will share some services with the adjacent BHP Mitsui Poitrel Mine, including site offices, workshops, storage areas, communications and car parking, and is the first component of the Bowen Basin Coal Growth (BBCG) project.

The other two mine components are Caval Ridge Mine (a 50:50 joint venture between BHP Billiton and Mitsubishi Development, managed by BMA), a new open-cut mine and associated infrastructure to produce up to 5.5 Mtpa of coal; and Goonyella-Riverside Mine, an expansion of the existing open-cut and underground mining operations to produce up to 9.5 Mtpa of coal.

The Caval Ridge Mine is expected to create 1,200 jobs during construction and 500 post construction, with environmental approval pending. The first coal is expected to be produced from the Caval Ridge project in 2013.

The fourth component is the planned construction of a new airport to replace the existing Moranbah airport facility, to accommodate increased travel to and from the area and to provide a wider range of transport options for the larger workforce associated with the BBCG project’s expanded operations.