Billiton subsidiary, Coal Operations Australia (COAL), has won development consent for the Mount Arthur North open cut mine in the Hunter Valley. The $539 million mine will produce around 15 Mt of thermal coal annually. COAL has also won a five year contract to supply Macquarie Generation's power stations from 2003 with around 3Mtpa.
COAL already operates the Bayswater open cut mine adjacent to Mount Arthur North, near Muswellbrook. It is likely the two mines will share a significant amount of infrastructure.
Xstrata agreed in principle to sell the United coal mine in the Hunter Valley, to Glencore International AG by June 30. Xstrata is 44.1% owned by Glencore.
In related company news, the Cumnock coal mine, (majority owned by Glencore) produced 382,000 tonnes in the quarter ended March 31. Production was down because of a scheduled longwall relocation.
A roof fall at the Bellambi West mine in NSW caused injuries to two miners. Mine owner and operator Allied Coal is in the process of restarting longwall operations in the mine.
