29th Feb 2008 16:56
BHP Billiton PLC29 February 2008 NEWS RELEASERelease Time IMMEDIATEDate 29 February 2008Number 09/08 BHP BILLITON APPROVES DOUGLAS-MIDDELBURG OPTIMISATION PROJECT BHP Billiton today announced approval of the Douglas-Middelburg Optimisation(DMO) Project, with an expected capital investment of US$975 million. The DMO project scope includes utilising reserves across the Douglas andMiddelburg Mine Services (MMS) collieries and development of new mining areaswith low strip ratio coal, with product being fed into a new 14 Mtpa coalprocessing plant. The new coal processing plant will replace the existing, lessefficient washing plant at Douglas. The project will enable BHP Billiton tomaintain energy coal exports from the combined Douglas Colliery and MMS ataround current levels (approximately 9.5 Mtpa BHP Billiton share) whilst alsofulfilling domestic contractual commitments. First coal from the new mining areas is expected in mid-2008 and the new plantis expected to receive coal in mid-2010. The anticipated life of miningoperations is to 2034. The Douglas and MMS collieries are currently owned through the Douglas TavistockJoint Venture (DTJV), in which BHP Billiton has an 84% share and Xstrata has a16% share. To facilitate the DMO project, which is to be developed and ownedsolely by BHP Billiton, the DTJV will be restructured with each of the jointventure partners being allocated coal resources according to their ownershipshare. A number of regulatory approvals are being sought to give effect to thisrestructure. President BHP Billiton Coal, Dave Murray said: "Approval of the DMO project is acore component of BHP Billiton's coal strategy and is in keeping with BHPBilliton's focus on operating low-cost, long-life assets. This project allows usto realise maximum value from these assets by optimising the existing reservesat Douglas and MMS and enabling us to maintain exports through to 2034. With therecent approval of the US$450M investment in the Klipspruit Project, our SouthAfrican coal operations will now comprise of three world class assets, namelyMiddelburg Mine Services (which now incorporates the resources of DouglasColliery), Khutala Colliery and Klipspruit Colliery." **** Further information on BHP Billiton can be found on our Internet site:www.bhpbilliton.com Australia United KingdomSamantha Evans, Media Relations Andre Liebenberg, Investor RelationsTel: +61 3 9609 2898 Mobile: +61 400 693 915 Tel: +44 20 7802 4131 Mobile: +44 7920 236 974Email: [email protected] Email: [email protected] Don Carroll, Investor Relations Illtud Harri, Media RelationsTel: +61 3 9609 2686 Mobile: +61 417 591 938 Tel: +44 20 7802 4195 Mobile: +44 7920 237 246Email: [email protected] Email: [email protected] South AfricaUnited StatesTracey Whitehead, Investor & Media Relations Alison GIlbert, Investor RelationsTel: US +1 713 599 6100 or UK +44 20 7802 4031 Tel: SA +27 11 376 2121 or UK +44 20 7802 4183Mobile: +44 7917 648 093 Mobile: +44 7769 936 227Email: [email protected] Email: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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