BHP BILLITON is planning an expansion of its Mt Arthur coal mine as the company takes advantage of rising prices.
BHP Billiton has said the coal mine will be expanded to increase the production of thermal coal from 11.5m tonnes per annum (mtpa) to about 15mtpa.
The 670-strong workforce at the mine, near Muswellbrook in the Upper Hunter Valley of New South Wales, is set to expand by about 190 employees.
BHP says the expanded mine, the MAC20 Project, is scheduled to begin operations in the first half of calendar year 2011 at an estimated capital investment of $US260m ($A319.74m).
Spot prices for thermal coal shipped from Newcastle have been rising in recent months, after collapsing from a high above $US192 per tonne in July 2008.
The commodity hit a low of $US65.36 per tonne in March 2009, but has since rebounded, and was worth $US76.48 per tonne on the spot market last month.
NSW government approval to expand the mine's production capacity was granted under the existing development consent, BHP Billiton said.
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