Rio Tinto to boost Queensland coal output 100 per cent

RIO Tinto Coal Australia believes it can double its Queensland coal production to 40 million tonnes a year within seven years, thanks to booming demand and planned new rail and port capacity.

Managing director Hubie van Dalsen announced the target at an on-site ceremony yesterday to mark the start of earthworks at the company's newest coal project, the $950 million Clermont mine in the Bowen Basin.

He said: "Our aim is to lift our Queensland production from 21 million tonnes of thermal and coking coal last year to 40 million tonnes per annum by 2015.

"We believe we have the resources and the reserves base to do this.

"Until now the markets weren't quite there and the infrastructure wasn't there, but as that becomes available, we have opportunities to exploit."

The company's doubling plans include expansions at its Queensland operations at Kestrel and Hail Creek and a number of greenfield prospects.

Mr van Dalsen said Rio Tinto Coal "had confidence" in the long-term market demand for thermal and coking coal and believed that "advances in technology will enable it to retain its relevance in a carbon-constrained world".

It had based its expansion plans on publicly announced infrastructure expansions that were either under way or planned for the next seven years.

"The planned rail track, rolling stock, port expansions and the work by the Goonyella Coal Chain central co-ordinator are all vital to underpin this growth in the mining industry," he said.

Premier Anna Bligh, who was at the Clermont mine ceremony, said that Rio Tinto Coal's commitment plans for Queensland "reinforces the strong confidence" the industry had in the State Government's ability to deliver its $14 billion coal infrastructure plan.

The Clermont mine is expected to produce its first coal in early 2010 and reach full capacity of 12.2 million tonnes of thermal coal a year in 2013, in time to replace the nearby Blair Athol mine, which is due to close in 2015.

Rio Tinto's Clermont partners are Mitsubishi Development, J-Power Australia and JCD Australia.

Premier Bligh yesterday also opened a $200 million coal mine near Collinsville, developed by Queensland company QCoal Sonoma, with four overseas partners including Taiwan's largest steelmaker, the second largest steel producer in Japan and iron ore company Cleveland-Cliffs.

Expansion:

Rio Tinto expects to produce 40m tonnes of coal a year in Queensland by 2015

Will expand its Kestrel and Hail Creek operations

New $950m Clermont mine will replace Blair Athol

Clermont to produce first coal by 2010

Full production of 12.2m tonnes by 2013