Anglo American will move forward with its $1.7 billion Grosvenor metallurgical coal project in the Bowen Basin of Queensland, Australia. The greenfield project is situated immediately to the south of the company’s Moranbah North metallurgical coal mine and is expected to produce 5 million metric tons per year (mt/y) from a longwall operation over a projected life of 26 years. “Grosvenor is the first of our next phase growth projects and will initiate our industry leading production growth of metallurgical coal from our Australian business over the next decade,” said Cynthia Carroll, CEO, Anglo American.

The Grosvenor project forms a major part of the company’s strategy of tripling met coal production from its Australian assets by 2020 using a standard longwall and coal handling and preparation plant (CHPP) design model. In its first phase of development, Grosvenor will consist of a single new longwall mine, targeting the same Goonyella Middle coal seam mined at Moranbah North, and will process its coal through the existing Moranbah North CHPP and train loading facilities. A pre-feasibility study for expansion by adding a second longwall at Grosvenor is under way.

First development coal from Grosvenor is expected in 2013 and the commissioning of the longwall in 2016. Such project timings are contingent upon the receipt of the appropriate licenses and permits. Grosvenor has received approval of its Environmental Impact Statement, the project’s Environmental Authority is in train and the key mining lease is anticipated during the first quarter of 2012.

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