Anglo American’s Board has approved its five million tonne per annum coking coal mine in Queensland’s Bowen Basin.
The greenfield project is located just south of the miner’s existing Moranbah North coal mine, and targets the same Goonyella Middle coal seam as the Moranbah mine.
It will be an underground longwall operation with a mine life of around 26 years.
Anglo will spend around US $1.7 billion on the mine in total.
Cynthia Carroll, Anglo American CEO, said "Grosvenor is the first of our next phase growth projects".
In April, Carroll announced a $2.7 billion growth plan for Grosvenor and the Moranbah South underground coal mines.
According to the miner the fully owned Grosvenor project forms a major part of Anglo’s strategy to triple its coking and metallurgical coal production from its Australian assets by 2020 using a standard longwall and CHPP design model.
In its first phase of development, Grosvenor will consist of a single underground longwall mine, processing the coal via Moranbah North mine’s CHPP and infrastructure, with first development coal expected in 2013, and full commissioning of the longwall in 2016.
Head of Anglo American’s metallurgical coal business, Seamus French said the miner is "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," French added.
A pre-feasibility study for a second longwall is already under way, with the miner having received approval for its Environmental Impact Statement and expecting mining leases in the first quarter of next year.
Pacific National recently launched two new locomotives to support the planned growth in the Moranbah region, naming one after Anglo CEO Cynthia Carroll.
These new trains will be part of a fleet of trains that will haul around 20.2 million tonnes of coal annually from Anglo American’s Moranbah North, Capcoal, and Foxleigh mines to port.