The funds will be used for feasibility studies, the procurement of long-lead time items and initial project activities. The Caval Ridge project is expected to produce an estimated 5.5 million metric ton per year (mtpy) of high quality coking coal from the Caval Ridge mine and an incremental 2.5 million mtpy from the Peak Downs mine (100% basis). The HPX3 project is expected to increase the annual capacity of the Hay Point Coal Terminal from 44 million mtpy to 55 million mtpy (100% basis). Subject to regulatory approvals, final approval for the development of these projects is expected when the feasibility studies are completed, estimated to be the third quarter of 2011.