Xstrata ponders Oz port project

London-listed miner Xstrata, the world's biggest exporter of power-station coal, will this month begin studying a potential A$1 billion (£478.7 million) investment to modify Port Alma, near Gladstone on Australia's north-east coast, for exports.

The surge in demand for coal from markets such as China has put a strain on Australian infrastructure, with dozens of ships waiting for access to facilities and companies missing out on soaring prices.

The government recently signalled it may ask the country's major exporters, including Xstrata, BHP Billiton and Rio Tinto, to help boost port capacity.

Xstrata's proposed new coal terminal at Port Alma could have a capacity of at least 20 million tonnes a year.

"We are very pleased to be working with the Gladstone Port to consider the feasibility of developing Port Alma to meet the increasing infrastructure needs of the state of Queensland," Xstrata Coal chief executive Peter Freyberg said.

Contract prices for thermal coal have doubled this year.