Saturday, 20 August
Vale SA, the world's biggest iron ore exporter, approved spending $875 million to pay its share in the Eagle Downs coal project in Queensland it owns with equal joint venture partner Aquila Resources Ltd.
Eagle Downs, an underground mine project in the Bowen Basin, is planned to produce an average of 4.5 million metric tons of steelmaking coal annually, Rio de Janeiro-based Vale said in an e-mailed statement. The Queensland government also approved the project's mine lease, it said.
Vale expects to "expedite commencement of the project" after board and government approvals, Decio Amaral, Vale's
Global Coal Director, said in the statement. "We're looking to start construction as soon as possible, with the first long wall operation in the third quarter of 2015," he said.
The Brazilian company is mining and developing coal projects from Australia to Columbia and Mozambique, aiming to boost output to 40 million metric tons by 2016. Demand for steel
will rise 6 percent next year, according to the World Steel Association.
Eagle Downs may cost A$1.2 billion to develop, Aquila said May 31, with a board decision due in the second quarter of 2012.
Aquila fell 2.9 percent to A$5.64 at 10:27 a.m. Sydney time, compared with a 2.3 percent drop in the benchmark S&P/ASX 200 index.
Vale SA, the world's biggest iron ore exporter, approved spending $875 million to pay its share in the Eagle Downs coal project in Queensland it owns with equal joint venture partner Aquila Resources Ltd.
Eagle Downs, an underground mine project in the Bowen Basin, is planned to produce an average of 4.5 million metric tons of steelmaking coal annually, Rio de Janeiro-based Vale said in an e-mailed statement. The Queensland government also approved the project's mine lease, it said.
Vale expects to "expedite commencement of the project" after board and government approvals, Decio Amaral, Vale's
Global Coal Director, said in the statement. "We're looking to start construction as soon as possible, with the first long wall operation in the third quarter of 2015," he said.
The Brazilian company is mining and developing coal projects from Australia to Columbia and Mozambique, aiming to boost output to 40 million metric tons by 2016. Demand for steel
will rise 6 percent next year, according to the World Steel Association.
Eagle Downs may cost A$1.2 billion to develop, Aquila said May 31, with a board decision due in the second quarter of 2012.
Aquila fell 2.9 percent to A$5.64 at 10:27 a.m. Sydney time, compared with a 2.3 percent drop in the benchmark S&P/ASX 200 index.
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