(EnergyAsia, June 12 2012, Tuesday) — Australia’s Queensland state has given final approval to UK mining giant Anglo American to develop its proposed A$1.7 billion Grosvenor metallurgical or coking coal mine for production start-up next year. (US$1=A$1.02).

The mine will have the capacity to produce seven million tonnes of high quality coking coal a year, with about five million tonnes for export to Asia’s steel mills.

Located south of another Anglo American mine in Moranhab North in the prolific Bowen Basin, the greenfield mine has a projected 26-year lifespan and will be a key plank in the company’s plan to triple its global coking coal capacity by 2020.

Anglo American will begin developing Grosvenor’s single new underground longwall mine and process the coal through its existing Moranbah North coal handling and preparation plant (CHPP) and train loading facilities. It has also begun a pre-feasibility study for expansion with the addition of a second longwall at Grosvenor.

The company’s decision to proceed with the investment appears to vindicate the Federal government’s argument that Australia’s mining industry remains competitive despite the growing wave of complaints against the rising costs of doing business in Australia, along with tough environmental regulations and the implementation of new carbon and mining taxes next month.

In announcing the state government’s approval, Queensland’s Natural Resources and Mines Minister Andrew Cripps said the company was also obliged to provide accommodation for local workers in an areas strained by housing and infrastructure constraints.

“The Grosvenor mine will create up to 1,000 new jobs for Queenslanders and represents a significant expansion of Anglo American’s Queensland operations. This is another boost for Queensland, strengthening the resources sector, one of the four pillars of our economy,” he said.

The state and Federal governments had approved a detailed Environmental Impact Statement (EIS) in line with the Federal Environment Protection and Biodiversity Conservation Act 1999.

Seamus French, CEO of Anglo American’s metallurgical coal business, said:

“We are excited to be developing the first growth phase of our planned Moranbah hub which will drive our target of 12% compound annual production growth by 2020. Grosvenor and the wider hub will produce some of the highest quality coking coal in the world and represents a major investment commitment for the region.

“Our longwall design model will enable us to replicate our approach across our expansion footprint, ensuring the transfer of best practice project efficiency, cost control and risk mitigation. We have also now received confirmation of our development rights from the Queensland government for the expansion of the Abbot Point coal port – a dedicated export facility that would have the capacity to accommodate the growth from our Moranbah hub.”

CEO Cynthia Carroll said: “Anglo American is delivering substantial near term production growth, across our copper, nickel and iron ore businesses, with two of our four major strategic growth projects already coming on stream during 2011. 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.”