Mitsubishi Corporation announced on Wednesday the Australian resource development subsidiary, Mitsubishi Development (MDP) and Xstrata Coal, which is Xstrata’s coal division, decided to expand coal production capacity of Ulan mine project in New South Wales in Australia. They increase the capacity to more than double at annual 12.9 million tonnes by 2014 for around A$ 1.3 billion, of which Mitsubishi Corporation pays 10%. They will expand the coal sales to Japan and offshore market.The mine produces annual 6.2 million tonnes of coal at existing Ulan No.3 underground thermal coal mine. They decided to develop Ulan West project with 6.7 million tonnes of output capacity. The expansion can use existing infrastructure including rail loading facilities. They start the expansion project in the year to operate longwall coal mining for 18 years. Xstrata controls 90% of the operator, Ulan Coal Mines with 10% share by MDP. The project is to ship the coal from coal shipping facility in Newcastle port through around 275 kilometers rail transport from the mine in mid-west of New South Wales.
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