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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (36046)	4/24/2009 4:31:38 PM
From: LoneClone	Read Replies (1) \| Respond to of 193793

First energy coal from BHP Billiton’s 81%-complete Klipspruit miningweekly.com By: Martin Creamer 23rd April 2009 JOHANNESBURG (miningweekly.com) – The first coal to run-of-mine stockpile has been achieved at South Africa’s 81 %-complete Klipspruit energy-coal project in Mpumalanga, BHP Billiton said on Thursday. On schedule and on budget, BHP Billiton added in its quarterly production report, were the accelerated construction activities at the company’s 100%-owned, $975-million, 48 %-complete Douglas-Middelburg Optimisation (DMO) energy-coal project in the same province. BHP Billiton, headed by South African Marius Kloppers, also announced a lower manganese production outlook following its cutbacks in line with market weakness at Samancor in South Africa and Australia in December. BHP Billiton and Anglo Coal were in joint venture at the $900-million Klipspruit project, which would produce 1,8-million tons a year of export thermal coal and 2,1-million tons a year of domestic thermal coal incrementally from the second half of 2009, the diversified miner said. The far-larger DMO project would, from mid-2010, produce ten-million tons a year of export thermal coal and 8,5-million tons a year of domestic thermal coal to sustain its current output following the closure of Douglas Middelburg’s underground operations. The planned closure of Douglas Middelburg’s underground mining operations was being partly offset, BHP Billton said, by “strong” operational performance at Cerrejon Coal in Colombia and Hunter Valley in Australia. Energy coal production was in line with the nine months ended March 2008. The March 2009 quarter was impacted on by wet weather at Hunter Valley and Douglas Middelburg, as well as a planned longwall move at San Juan Coal in the US. Cerrejon Coal sales were impacted on by planned maintenance at the port. Manganese ore production decreased compared with all other comparative periods, in line with previously announced production cuts. Production continued to be impacted by lower customer demand. In response to weaker market conditions, production in the 2009 financial year was expected to be 30% lower than the 2008 financial year. Manganese alloy production was also lower across all periods as production cuts were implemented in response to weak demand. Reduction was expected to be 35% down when compared to the 2008 financial year. Reduction in manganese ore output was balanced across BHP Billiton’s Hotazel mines, in South Africa, and its Gemco operations, in Australia. BHP Billiton managed its 60%-owned manganese business – compared with Anglo American’s 40% – under the name Samancor with total current output capacity at some 7-million tons a year. Manganese alloy furnace rebuilds had been brought forward at Metalloys, in South Africa, and at Temco, in Australia, with certain of furnaces not restarting until market conditions improved.