The Grosvenor project forms a major part of the company's strategy of tripling met coal production from its Australian assets by 2020 using a standard longwall and coal handling and prepa-ration plant (CHPP) design model. In its first phase of develop-ment, Grosvenor will consist of a single new longwall mine, tar-geting the same Goonyella Middle coal seam mined at Moranbah North, and will process its coal through the existing Moranbah North CHPP and train loading facilities. A pre-feasibility study for expansion by adding a second longwall at Grosvenor is under way.

First development coal from Grosvenor is expected in 2013 and the commissioning of the longwall in 2016. Such project timings are contingent upon the receipt of the appropriate licenses and per-mits. Grosvenor has received approval of its Environmental Impact Statement, the project's Environmental Authority is in train and the key mining lease is anticipated during the first quarter of 2012.