The project, which will extend the life of the mine to 2031 and increase coking coal production to an average of 5.7 million tonnes per annum, was earlier slated for opening in 2012 but market economics dictated a 2013 opening, a Rio Tinto spokesperson told ILN.

“Early 2013 is our current schedule for the project,” he said.

“The date for commencing operations at the Kestrel mine extension project was revised last year to early 2013.

“This follows a decision in 2009 by the project team to implement changes in response to the economic climate at the time.”

Rio Tinto Queensland Coal managing director Bill Champion recently told a UBS Iron Ore and Coal Seminar that the company’s pipeline contained a mixture of brownfield and greenfield expansion options, including Kestrel, Clermont and Hail Creek.

The Kestrel mine extension offered long-life, low-cost coking coal, a long-life extension to 2032 and significant reduction in operating costs.

It also provided incremental production of about 1Mt and the Kestrel West resource could provide top-up production to maintain output.