Xstrata Coal is advancing an extensive project pipeline comprising 20 major brown- and greenfield projects in Australia, South Africa and Colombia. Projects already in implementation will add 31 million tonnes of annual production.
All volumes and capital are shown on a managed basis.
Australian thermal coal
The Mangoola project in New South Wales is on
track to commission its coal preparation and
handling plant in the first half of 2011.
Mangoola
This greenfield project in New South Wales is nearly 70% complete and ahead of schedule and budget. The project is scheduled to commission its new coal handling and processing plant in the first half of 2011. Mining commenced in January 2011 and will ramp up to 8 million tonnes annually consisting of both export and domestic quality thermal coal.
Newlands Northern underground
The Newlands Northern underground extension in Queensland was 54% complete at the end of December, with longwall coal forecast to commence in late 2011.
Ravensworth North
The Ravensworth North project is located outside Singleton in the Hunter Valley, New South Wales. The project will be a large open cut mine of up to 8 million tonnes per annum of saleable semi-soft and thermal coal. Subject to regulatory approvals being granted during the first quarter of 2011, first coal will commence in 2012, with a capital expenditure of $1.4 billion.
Ulan West
The $1.3 billion Ulan West project situated in New South Wales will add a second underground longwall mining operation to the existing Ulan No. 3 longwall mine. Regulatory approval was received in December 2010 and longwall mining will begin in 2014, producing 6.7 million tonnes of export thermal coal per annum.
Wandoan
The Wandoan coal project in Queensland is currently advancing through feasibility stage. More than 1 billion tonnes of reserves have now been proven to underpin thermal coal exports from the initial stage of up to 22 million tonnes per annum. State regulatory approval was granted in November 2010, initiating the final stage of the mining lease application.
Americas
Cerrejón
Studies of the proposed staged expansion at Cerrejón are progressing. The feasibility study for the first phase of the expansion will be presented for shareholders approval in 2011. The pre-feasibility study for further expansion options continues.
South African thermal coal
ATCOM East
The ATCOM East project in South Africa, at a capital cost of ZAR3 billion, was 57% complete at the end of December. The coal preparation plant is on schedule to commission in 2011 to produce 4 million tonnes per annum.
Tweefontein
The Tweefontein optimisation feasibility study is on track for completion in 2011. This brownfield expansion is expected to increase production by 4 million tonnes per annum. The project comprises large scale open cut mining and a new coal handling and preparation plant, resulting in increased yields and significantly reduced train handling times. Tweefontein will be the third of three large-scale, lower cost, open cut mine complexes for the South African operations.
Iron Ore
Sphere
Xstrata has acquired 76% of Sphere, which has interests in three iron ore projects in Mauritania, West Africa: the large-scale Guelb el Aouj project is a 50/50 joint venture with Société Nationale Industrielle et Minière (SNIM), Mauritania’s majority state-owned iron ore producer; the Askaf project, located 35 kilometres south of Guelb el Aouj; and the large Lebtheinia resource, located 90 kilometres from the coast.
Zanaga
On 8 February 2011, Xstrata announced it had elected to exercise the option to acquire 50% plus one share in Jumelles Limited (BVI) in respect to the Zanaga iron ore project in the Republic of Congo. Under the agreement, Xstrata will fund a minimum of $100 million towards a feasibility study. Xstrata Iron Ore, which is currently managed through Xstrata Coal, will prioritise a value engineering exercise on the project, building on the pre-feasibility study undertaken by Jumelles.
