BHP Billiton last week approved a $400 million investment in the Muswellbrook mine, which is expected to create hundreds of jobs.

Annual run-of-mine coal production will increase by four million tonnes to 24 million tonnes a year.

BHP’s NSW energy coal asset president Scott Sullivan said the increase was expected to be in production by the second half of 2013, as part of Mt Arthur’s long-term expansion plan.

“The expansion is expected to generate more than 300 new full-time jobs at full-production, in addition to the 1000 full-time roles at the mine today,” Mr Sullivan said.

“Mt Arthur will encourage local employment where the necessary skills exist to ensure that local communities benefit from the project.

“In addition to employing skilled workers, Mt Arthur Coal will up-skill existing employees and recruit and train local people without existing mining skills as part of the project.”

The expansion, known as the RX1 project, is substantially a mine-only expansion, without an increase in coal preparation plant capacity.

New facilities, including bath houses and work bays will be required.

The company has committed to continued consultation with the community, council and other stakeholders and will invest $7 million towards the upgrade of Thomas Mitchell Drive.

Mr Sullivan said the additional production would help supply rapidly expanding international thermal coal markets.

The NSW government approved Mt Arthur’s consolidation project in September 2010, which would allow production to increase up to 36 million tonnes a year and consolidate all open cut mining approvals on the site under a single project approval.