Monday, 3 March 2008

BHP's answer to South Africa power outage problem

BHP Billiton Ltd., the world's largest mining company, plans to invest $975 million to expand a coal mine and processing facilities in South Africa to maintain exports amid rising prices for the fuel according to Bloomberg. Coal prices have apparently surged this year after bad weather and power outages cut output in countries including Australia and South Africa. The first coal from the new mining areas is expected by midyear and the new plant will be ready to receive coal by mid- 2010, BHP said. Mining operations are expected to extend until 2034, the company said. BHP also owns a 37.4 percent stake in South Africa's Richards Bay Coal Terminal, the world's largest export terminal for the fuel.

picture courtesy of Roshana

No comments: