Rio Tinto Begins Production At Kestrel Coal Mine Extension

(RTTNews) - Anglo-Australian Mining giant Rio Tinto (RIO, RIO.L, RTNTF, RTPPF) announced that it has began coal production at the Kestrel Mine Extension, a US$2 billion dollar project near Emerald in central Queensland.

The company said that the extension of Kestrel mine is expected to add 20 years to the life of the operation and help secure work for more than 400 employees.

Kestrel Mine's main export customers are in Japan, Korea, Taiwan, Europe, India and China, the company added.

The first shipment of coal from the new area of the mine is expected to leave Australia in the coming weeks.

John Coughlan, Kestrel's mine manager, stated that "after four years of construction, seeing the longwall cutting coal is an exciting milestone and marks the start of a long future for Kestrel mine".

"Over the coming year and a half we'll see a gradual transition of production as our existing operation, known as Kestrel North, winds down and the new Kestrel South operation ramps up".

Kestrel South is expected reach full capacity by the end of 2014 and produce an average of 5.7 million tonnes per annum over the next 20 years.