The replacement mining area at the Appin Mine will have an annual output capacity of 3.5 million tons and would help sustain Illawarra Coal’s production capacity at 9 million tons.

Appin Area 9 project will replace production at the West Cliff Mine and entails development of roads, ventilation infrastructure, new and reconfigured conveyors and other mine services.

BHP has secured all necessary regulatory approvals for the project scheduled to be operational by

BHP Billiton metallurgical coal president Hubie van Dalsen said the investment sustains Illawarra Coal’s production rates and recognises the value of its high quality metallurgical coal resources.

"It is also good news for local jobs and the economy in the region," he added.