Xstrata Board Approves Ravensworth North Project
Tuesday, December 7th, 2010
The Xstrata Plc Board has approved the development of the Ravensworth North open cut mine in the Upper Hunter Valley of New South Wales, Australia for a total investment of $1.36 billion (A$1.4 billion).
Situated within the existing Cumnock Coal and Ravensworth complex, the Ravensworth North open cut mine will produce 8 million tonnes per annum of export thermal and semi soft coking coal at full production, with a mine life of approximately 26 years. The Project area encompasses the existing Xstrata Coal Ravensworth and Cumnock Operations.
Construction of the mine is expected to commence in early 2011, subject to the receipt of Development Consent by the New South Wales Department of Planning and Australian Government environmental approvals. First coal is expected to be delivered in July 2012. Approximately 250 new jobs will be created during construction of the Ravensworth North project, with 550 fulltime jobs expected to be created during ongoing operations.
Peter Freyberg, Chief Executive Xstrata Coal, said, “Ravensworth North will play a significant role in the continued growth of our New South Wales operations. The mine will be the culmination of Xstrata Coal’s long term strategy for the area and combines its suite of mineral tenements and assets to realise the considerable synergies on offer from existing operations.
“Xstrata Coal’s continued investment in the expansion of our existing mines demonstrates our commitment to the growth of New South Wales’ export industry and our contribution as a significant employer within the communities in which we operate.”
Mick Davis, CEO Xstrata, said “Ravensworth North represents yet another world-class project in Xstrata’s prolific organic growth programme. We are continuing the development of 20 significant projects in 2010, totalling $14bn, putting us on track to take advantage of strong commodity markets and deliver against our objective to grow our volumes by 50% by 2014 and reduce our costs by over 20% over the same period.”
The Ravensworth North project will be jointly owned by Cumnock No. 1 Colliery Pty Limited (Xstrata Coal) – 90% and ICRA Cumnock Pty Limited (Itochu) – 10%.