At the end of the period the San Juan longwall project in New Mexico, US, was 88% complete. The mine will replace production from two of BHP Billiton's three existing surface mines. The longwall compatibility test has been completed and the majority of the longwall equipment has been received ahead of schedule.
Surface facilities are on schedule for completion in March 2002. The shaft excavation, including the bottom station, has been completed. The concrete lining for the shaft bottom station will be completed by early February 2002. Longwall startup is forecast for August 2002 with full production expected by the end of 2002. Project spending is on budget at US$146 million, with US$127 million committed at the end of December.
Meanwhile, the new Dendrobium mine project remains on schedule for May 2005. The mine is planned as a low cost underground longwall operation to replace output from the Elouera mine, currently supplying the Port Kembla steelworks. Dendrobium will be capable of producing 5.2 million tonnes per annum, resulting in 2.6Mtpa of coking coal and 1Mtpa of thermal coal.
New South Wales Government approval was received in late November 2001, seven months ahead of schedule. Construction activities are underway on critical path items.
