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Construction of Caval Ridge Southern Circuit approved

BHP Billiton Mitsubishi Alliance (BMA) will invest US$204 million (100 per cent basis)* in the Caval Ridge Southern Circuit (CRSC) capital growth project, in Central Queensland’s Bowen Basin. 

CRSC is an 11 kilometre overland conveyor system which will transport coal from Peak Downs Mine to the Coal Handling Preparation Plant (CHPP) at the nearby Caval Ridge Mine. 

The project will create up to 400 new construction jobs and lock in approximately 200 ongoing operational roles. It will also result in the Caval Ridge preparation plant increasing its throughput to reach its 10 million tonne per year capacity.

BHP Billiton President Operations, Minerals Australia, Mike Henry said the project formed the missing link between the two mines, and will accelerate growth and productivity.

“This investment furthers our productivity agenda, reduces costs, releases latent equipment capacity, and strengthens our coal business’ global competitiveness.” 

“We are committed to Queensland’s Bowen Basin and this project creates new employment opportunities during construction and locks in ongoing operational roles. The investment flowing from the project will help support the local community and State economy after what has been a difficult time in the region.”

Construction of the project is scheduled to commence mid CY2017 and take 18 months to complete. In addition to the new conveyor and associated tie-ins, the project will also mean a new stockpile pad and Run-of-Mine station at Peak Downs and, at Caval Ridge, the existing CHPP and stockyard will be upgraded. BMA will also invest in new mining fleet, including excavators, and trucks. 
* BHP Billiton and Mitsubishi each hold a 50 per cent interest in the BHP Billiton Mitsubishi Alliance joint venture.