Board Appr Dendrobium Mine
BHP Billiton Limited
3 December 2001
BHP Billiton Limited is issuing this announcement to fulfil disclosure
obligations arising from its secondary listing on the London Stock Exchange.
The text of this release is identical to that issued by BHP Billiton Plc
earlier.
3 December 2001
Number: 34/01
BHP BILLITON BOARD APPROVES DENDROBIUM MINE
BHP Billiton today announced approval for the construction of the Dendrobium
metallurgical coal mine in the Illawarra region of New South Wales.
Dendrobium will have the capacity to produce 5.2 million tonnes of raw coal
per annum. Capital expenditure is estimated at US$126 million.
The BHP Billiton owned and operated Dendrobium mine will be a valuable source
of high quality metallurgical coal, a vital component of a coking coal blend
for domestic steel producers including the BHP Steel Port Kembla Steelworks,
and export markets.
Illawarra Coal is progressively rationalising its mines into increasingly more
productive and cost effective operations. The first rationalisation occurred
with Cordeaux Colliery placed on care and maintenance in April 2001.
Dendrobium will replace the nearby Elouera Colliery which is expected to cease
longwall operations following reserves depletion in 2005. The strategy is
designed to further move Illawarra Coal's operations into the lower cost
quartile while being able to continue the supply of premium coking coal to
customers. Illawarra Coal shipped 5.9 million tonnes of coking coal in the
year ended 30 June 2001, from total BHP Billiton coking coal shipments of 33.9
million tonnes.
Development will commence immediately with first longwall production expected
by early 2005. Dendrobium will be a longwall underground mining operation
producing approximately 2.6 million tonnes per annum of metallurgical coal to
be blended for domestic and export consumption and one million tonnes per
annum of thermal coal (by-product) for export consumption. The mine is
expected to reach full production in 2006.
Dendrobium will utilise existing facilities including rail transport, coal
preparation plant and pit top facilities. In addition to providing replacement
coal, the mine will also contribute to lower operating costs through increased
equipment capacity and reduced transportation costs.
BHP Billiton President Carbon Steel Materials Bob Kirkby said: 'Dendrobium
will provide our domestic steel customers with a reliable and cost-effective
supply of coking coal, and will be blended with coals from BHP Billiton's
other Illawarra Coal operations to provide a premium product for international
customers.'
BHP Billiton Board approval of the project follows an examination of the
recommendations of a recent Commission of Inquiry, which cleared the way for
construction subject to a range of stringent conditions imposed by the New
South Wales Government.
The Dendrobium project will employ 170 mine employees and will generate an
additional 1000 direct and indirect jobs. The mine has the potential to inject
more than A$400 million into the regional economy.
BHP Billiton Illawarra Coal owns and operates four underground coal mines
(Appin, Tower, Elouera and West Cliff) in the Illawarra region of New South
Wales, Australia. The mines produce coal primarily suitable for coking.
Current production capacity of these mines is 7.9 million tonnes of clean wet
coal per annum.
* * * *
Further information can be found on our Internet site:
http://www.bhpbilliton.com
Australia United Kingdom/South Africa
Dr. Robert Porter, Investor Relations Michael Campbell, Investor & Media
Relations
Tel: + 61 3 9609 3540 Tel: +27 11 376 3360
Mobile: +61 419 587 456 Mobile: +27 82 458 2587
email: Robert.Porter@bhpbilliton.com email: Michael.J.Campbell@bhpbilliton.com
Mandy Frostick, Media Relations
Tel: +61 3 9609 4157 Ariane Gentil, Manager Communications
Mobile: +61 419 546 245 Tel: +44 20 7747 3977
email: Mobile: + 44 7881 518 715
Mandy.J.Frostick@bhpbilliton.com email: Ariane.Gentil@bhpbilliton.com
United States
Francis McAllister, Investor Relations
Tel: +1 713 961 8625
Mobile: +1 713 480 3699
email: Francis.R.McAllister@bhpbilliton.com
BHP Billiton Limited BHP Billiton Plc Registration number
ABN 49 004 028 077 3196209
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The BHP Billiton Group is headquartered in Australia
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