LONDON (dpa-AFX) - Mitsui & Co. Ltd. (MITSY.PK), a 20 percent stakeholder in the Kestrel Joint Venture with Rio Tinto plc (RIO, RIO.L, RTNTF.PK), Friday reported approving further investment in the Kestrel Mine Extension, necessitated by a rise in development cost expected to be as much as 631 million Australian dollars. The company elaborated that the increase is a result of delays in drift construction and a rise in labor and mining equipment costs.
Additionally, Mitsui expects to inject 126 million Australian dollars of capital via its subsidiary Mitsui Coal Holdings. Its total capital contribution to the Kestrel project is thus anticipated to be 415 million Australian dollars out of an aggregate of 2.07 billion Australian dollars. The Kestrel Mine Extension may see coal production begin in 2013.
Copyright RTT News/dpa-AFX
