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Known as the RX1 project, first production under the expansion is expected in the last half of 2013.
BHP noted it was a “mine only” expansion, without any associated increase in the capacity of the coal preparation plant.
The RX1 project is expected to create around 300 full-time jobs.
“The emergence of demand for coal in the key growth markets allows us to get product to market quickly, ahead of further coal preparation plant expansions,” BHP energy coal president Jimmy Wilson said.
“Importantly, the RX1 project will take advantage of existing port capacity and future expansion options will be supported by Mt Arthur Coal’s large, low-cost resource and the ability to expand the coal processing facilities.”
BHP shares are down 32c to $44.39 this morning.
