BHP Billiton to spend $500m to expand Kalimantan coal project

Australian Resources giant BHP Billiton estimates it would spend US$500 million to expand its metallurgical coal project in Kalimantan with the aim of bringing the project into production in 2012.

The company reported on Tuesday that the Lampunut, which is now under feasibility study, would be able to produce 3-5 MTPA of clean coal.

Lampunut project is part of a large, high quality metallurgical coal deposit in Central and East Kalimantan called Maruway that was discovered by BHP Billiton Minerals Exploration in the late 1990s.

The company has sanctioned the first stage development of Haju open cut mine in the Maruway for a capital investment of approximately US$100 million. The Haju mine is expected to start producing coal with capacity of 1-2MTPA starting mid-2009.(alex)