Babcock & Brown Infrastructure Ltd, the owner of Dalrymple Bay in Queensland, Australia’s 2nd biggest coal export terminal, plans to invest A$639 million in expanding the capacity to 85 million tonnes per year following regulatory approval.

Mr Jeff Pollock COO of Babcock Infrastructure said "The QCA approval now clears the path for expansion of the terminal to the full contracted capacity.”

The approval follows an earlier pitch for an initial A$532 million to expand the facilities to cope with 68 million tonnes per year by the end of 2007.

Dalrymple Bay handles about 25% of coal shipped from Australia and the terminal has been on lease from the Queensland Government for 50 years with an option on a further 49 years.