18Mtpa plan for Moranbah South

ANGLO American plans to double production from its 50%-owned Moranbah South greenfield coking coal project to 18 million tonnes per year after it starts full production in 2017, according to environmental approval documents lodged with the Queensland government.
18Mtpa plan for Moranbah South 18Mtpa plan for Moranbah South 18Mtpa plan for Moranbah South 18Mtpa plan for Moranbah South 18Mtpa plan for Moranbah South

Anglo American CEO Cynthia Carroll

Lou Caruana

The project, expected to cost about $US2 billion, would be part of the $15 billion earmarked for expanding Anglo’s coking coal operations in Queensland over the next eight years, leading to the creation of more than 3200 jobs.

About 14Mtpa of high quality coking coal for the export market would be produced from the mine, according to Anglo.

Construction on the project – which has Exxaro Resources as the other joint venture partner – is slated for 2014.

The project has a mine life in excess of 30 years with an average production of 12Mtpa.

Anglo is also considering adding a second longwall to its proposed $US1.7 billion Grosvenor project as it seeks to maximise its exposure to the rich reserves of metallurgical coal around its Moranbah North mine.

The company, which has announced a record $11.1 billion annual profit, is keen to invest in the project despite claims by Anglo chief executive Cynthia Carroll that Australia’s carbon tax would slash the value of its coal investments here by 30%.

The greenfield Grosvenor project, which was approved in December, is expected to produce 5Mtpa of metallurgical coal from its underground longwall operation over a projected life of 26 years and to benefit from operating costs in the lower half of the cost curve.