BHP says approves $100 mln Indonesian coal mine

MELBOURNE, June 24 (Reuters) - BHP Billiton (BHP.AX) (BLT.AX) said it has approved development of the Maruwai coal deposit in Indonesia for a capital investment of about $100 million, to take advantage of soaring coal prices.

BHP said the Haju open cut mine in Kalimantan province will initially produce 1 million tonnes per year of metallurgical coal, which is used for steel-making, with potential to expand to 2 million tonnes.

Construction will start immediately and first production is expected mid-2009.

BHP coal president Dave Murray said the miner was committed to growing its coal business to meet continued strong demand. ($1=A$1.05) (Reporting by Victoria Thieberger; editing by James Thornhill)