BHP Billiton has approved its US$390 million investment in the Newcastle Third Port project.

The project, managed by Newcastle Coal Infrastructure Group (NCIG), involves the construction of a 30 million tonnes per annum export coal loading facility with a future option to expand to 66 million tonnes.

The port is on Kooragang Island at Newcastle and will include a rail unloader, stockpile facilities, a ship loader and two berths in the south arm of the Hunter River.

BHP Billiton president coal, Dave Murray, says: "This project is an important strategic investment. It underpins our ability to pursue growth options in our New South Wales Energy Coal business and enables us to meet strong demand from our customers."

The first ship loading of coal is scheduled for late calendar year 2010.

Shareholders in NCIG are BHP Billiton 35.5% through Hunter Valley Energy Coal, Peabody Coal 17.7% through Excel Coal, Felix NSW 15.3%, Donaldson Coal 11.6%, Whitehaven Coal Mining 11.1% and Centennial Coal Infrastructure 8.8%.

www.bhpbilliton.com