Anglo American announces significant increase in metallurgical coal production
19 October, 2005
$516 million Lake Lindsay metallurgical coal project approved
Anglo American announces that approval has been granted to proceed with the $516 million (A$674 million) Lake Lindsay metallurgical coal project in Central Queensland, Australia.
The Lake Lindsay project consists of a new mining area at the German Creek complex, owned by Anglo Coal (70%) and Mitsui Coal Holdings (30%), which will increase annual saleable production at German Creek from 6 to 10 million tonnes (“Mt”) per annum. The additional annual production will comprise 3.7Mt of metallurgical coal and 0.3 Mt of thermal coal.
When the Lake Lindsay project and the Dawson project. announced in December last year, reach full production, Anglo Coal's annual managed production of metallurgical coal will increase from the current level of 18Mt to 27Mt (Anglo Coal attributable production will increase from 11 Mt to 16 Mt).
The Lake Lindsay project will also extend the mine life at German Creek by some 11 years, maintaining production until 2027 and realise marketing, infrastructure and operational synergies from the existing operations. The capital expenditure program will include new mining equipment, with significant expenditure on coal transport infrastructure and coal preparation and handling facilities.
Construction is due to start later this year with production coming on stream in late 2006.
Tony Trahar, Chief Executive of Anglo American said, “Anglo American's global coal business is continuing to expand. This is the second major new project being undertaken by Anglo Coal in Australia following the announcement of the Dawson Project late last year. The Lake Lindsay project will enhance Anglo Coal's position in the metallurgical coal market by broadening its product range and significantly increasing metallurgical coal production.”
Notes to Editors:
Anglo American plc is one of the world's largest mining and natural resource groups. With its subsidiaries, joint ventures and associates, it is a global leader in platinum group metals, gold and diamonds, with significant interests in coal, base and ferrous metals, industrial minerals and paper and packaging. The group is geographically diverse, with operations in Africa, Europe, South and North America, Australia and Asia. (www.angloamerican.co.uk).