Construction work on expanding the open cut metallurgical coal mine started in 2006. The expansion is expected to increase the mine life by 20 years, with around 75 million tonnes of saleable reserves in the area.

Anglo American chief executive Cynthia Carroll said the project demonstrated the company’s long-term commitment to the Bowen Basin.

“The new CHPP will operate at a capacity of 700 tonnes per hour, and will complement the existing processing facility at Capcoal, giving a combined sales output of over 9 million tonnes,” she said.

“When peak mining activities are reached in 2010, Lake Lindsay’s saleable production will be 5 million tonnes per annum, consisting of 2.3 million tonnes of hard coking coal, 1.7 million tonnes of PCI specification coal and 1 million tonnes of thermal coal,” she said.

Construction of a new overland conveyor was another major part of the Lake Lindsay expansion.

Prior to the global financial crisis, Anglo’s Capcoal underground complex covered the Grasstree and German Creek (Bundoora) longwall mines and the Aquila bord and pillar operation.

But earlier in the year when the steel market slump was affecting demand, Anglo cut production from its Bundoora mine and closed the Aquila colliery and Dawson North pit near Moura.