The announcement came when the Swiss-group revealed Xstrata Coal had increased its share in the Glendell Project from 67.5% to full ownership of 100%.

 

Xstrata paid $17.75 million for Mitsui Matsushima Australia Pty Limited 32.5% share of the New South Wales resource.

 

The commencement date for the project is yet to be announced.

 

Xstrata Coal now has 100% ownership in contiguous property and mining leases, which embrace Mt Owen, Ravensworth East and Glendell.

 

“This will provide opportunity to optimise resource recovery, and enable efficient utilisation of capital employed with the shared use of existing major infrastructure,” Xstrata said.

 

The Glendell project is a mainly steaming coal deposit in the Upper Wittingham Singleton Coal Measures. As of January 2001, open cut resources were estimated at 60Mt with 50Mt recoverable reserves in the coal lease.

 

Mining of the project was originally scheduled to begin in 2002 after a feasibility study update and mine planning study were carried out in 2000.