(EnergyAsia, September 2 2011, Friday) — Australian natural resources giant BHP Billiton has approved separate investments totalling more than US$800 million to expand a coal port in Newcastle in Australia and a coal mine in La Guajira in Colombia

The company said its wholly-owned subsidiary, Hunter Valley Energy Coal Pty Ltd, will pay US$367 million for its 35.5% share for the third phase development of the Newcastle Coal Infrastructure Group’s (NCIG) coal handling facility.

Due to start up in 2014, the project will increase the coal terminal’s annual handling capacity from 53 million tonnes to 66 million tones when fully operational in 2015.

BHP said the expansion will increase its annual allocation at the port by 4.6 million tonnes to 19.2 million tones, supporting future expansions of the Mt Arthur Coal mine located five kilometres south of Muswellbrook in the Upper Hunter Valley of New South Wales state.

Jimmy Wilson, BHP Billiton Energy’s Coal President, said:

“We are steadily growing the Mt Arthur Mine and evaluating the development of Caroona. This port expansion underpins the future of these two sites.”

Earlier, the Australian giant said it had agreed to invest US$437 million for its one-third share in expanding the Cerrejon coal mine in Colombia. Its partners, Anglo American and Xstrata, will also be investing the same amount to expand the mine’s annual production capacity of thermal coal by eight million tonnes to 40 million tonnes.

Construction will begin later this year with completion expected in 2013. The mine will be equipped to operate at its new capacity by end-2015, said BHP.