BHP Billiton will start talks with Australia's Queensland state government on construction of a new coal terminal as it beefs up its exports to steelmakers after being designated the preferred builder.
The new port, located at the state's Abbot Point coal exporting complex, is needed to meet growth projections for sales of coal used in steel making from the Bowen Basin collieries, BHP said.
"The new Abbot Point Coal Terminal is a key element in our growth plans," BHP's metallurgical coal division president Hubie van Dalsen said in a statement.
"BHP Billiton will now enter into detailed discussions with the Queensland Government, through North Queensland Bulk Ports, to negotiate arrangements for construction of the terminal," he said.
Abbot Point's current capacity is around 25 million tonnes a year and is set to double in about two years once a new rail system is installed. The expansion under discussion with Queensland government, dubbed "X80", would take capacity to around 80 million tonnes a year at a cost of around A$2 billion ($1.85 billion)
BHP's metallurgical coal production in the March quarter rose 7 percent over the corresponding period in 2009 to 8.157 million tonnes, company data shows.
BHP and other Australian coal miners, including Gloucester Coal and Macarthur Coal , have secured near-100 percent price increase for coking coal contracts with Asian buyers as steel production returns to pre-financial crisis levels.
Japan's JFE Holdings Inc , the world's sixth-biggest steelmaker, last month agreed to pay BHP $200 per tonne for coking coal for shipments between April 1 and June 30 -- representing a 55 percent premium over the benchmark price of $129 for the 2009/10 financial year.
BHP, the world's largest mining company, and Mitsubishi Corp last year agreed to pay $2.4 billion in total to acquire the New Saraji coal project in Australia from New Hope Corp providing an additional 10 million tonnes a year of shipping capacity from the Abbot Point terminal.
Queensland is the world's largest single source of metallurgical coal, last year exporting around 100 million tonnes.
The new port, located at the state's Abbot Point coal exporting complex, is needed to meet growth projections for sales of coal used in steel making from the Bowen Basin collieries, BHP said.
"The new Abbot Point Coal Terminal is a key element in our growth plans," BHP's metallurgical coal division president Hubie van Dalsen said in a statement.
"BHP Billiton will now enter into detailed discussions with the Queensland Government, through North Queensland Bulk Ports, to negotiate arrangements for construction of the terminal," he said.
Abbot Point's current capacity is around 25 million tonnes a year and is set to double in about two years once a new rail system is installed. The expansion under discussion with Queensland government, dubbed "X80", would take capacity to around 80 million tonnes a year at a cost of around A$2 billion ($1.85 billion)
BHP's metallurgical coal production in the March quarter rose 7 percent over the corresponding period in 2009 to 8.157 million tonnes, company data shows.
BHP and other Australian coal miners, including Gloucester Coal and Macarthur Coal , have secured near-100 percent price increase for coking coal contracts with Asian buyers as steel production returns to pre-financial crisis levels.
Japan's JFE Holdings Inc , the world's sixth-biggest steelmaker, last month agreed to pay BHP $200 per tonne for coking coal for shipments between April 1 and June 30 -- representing a 55 percent premium over the benchmark price of $129 for the 2009/10 financial year.
BHP, the world's largest mining company, and Mitsubishi Corp last year agreed to pay $2.4 billion in total to acquire the New Saraji coal project in Australia from New Hope Corp providing an additional 10 million tonnes a year of shipping capacity from the Abbot Point terminal.
Queensland is the world's largest single source of metallurgical coal, last year exporting around 100 million tonnes.