Anglo American, Xstrata and BHP agree mine expansion

City A.M. Reporter
Anglo American, Xstrata and BHP Billiton have approved a $1.3bn (£787m) expansion of the Cerrejon mine, home to one of the world's largest coal deposits, in Colombia.

The diversified miners said they would invest equal amounts in the project that will increase production and export capacity by 8 million tonnes per annum (mtpa) to 40 mtpa by the end of 2015.

Construction is set to start in the third quarter and be completed by 2013. The project will expand the mine, coal handling facilities and the port.

Cerrejon contains an estimated five billion tonnes of coal, of which 2.1bn tonnes are at a measured and indicated export quality status.