Rio starts coal production from US$2bn Kestrel expansion

Coal production started at Rio Tinto’s US$2 billion Kestrel mine expansion project near Emerald in central Queensland, Australia, which should add 20 years to the life of its existing operation (Kestrel North), the company said.

Named Kestrel South, the coking coal mine is expected to reach full capacity by the end of 2014 and produce and average of 5.7Mt/y over the next 20 years.

“Over the coming year and a half we’ll see a gradual transition of production as our existing operation, known as Kestrel North, winds down and the new Kestrel South operation ramps up,” Kestrel’s general manager of operations John Coughlan said.

Coughlan said he expected to see Kestrel South’s first shipment leave Australia in the coming weeks.

The project involved the construction of a new longwall, infrastructure that includes a 7.9km overland conveyor, and upgrades to the existing coal-handling and preparation plant.

It has around 115Mt of coal reserves and is owned 20% by Mitsui & Co Ltd.

The 4Mt/y Kestrel North mine has been operated by Rio since 1999, while construction of Kestrel South started in August 2008.