Cerrejon is owned by BHP Billiton, Anglo American and Xstrata and wants to grow output to 40 million tonnes annually in 2015. That is a key expansion project in Colombia, the world's No. 4 coal exporter.
Cerrejon plans to spend $100 million on its railroad, specifically on locomotives, rail cars and infrastructure support, the company said in a statement.
Around $200 million will be invested in its Caribbean port for a ship loader, infrastructure and support equipment, it said. It will spend $500 million on mining equipment such as electric shovels, hydraulics, and trucks.
The company did not give a breakdown on the rest of the planned $1.3 billion expansion budget, but on Wednesday, it said it would invest around 50 to 60 percent on construction and the rest on equipment.
Colombia's coal industry is dominated by major producers with their own port and rail facilities such as Cerrejon, Glencore and U.S. miner Drummond.
All the top thermal coal producers in Colombia have expansion projects, which the government hopes will double coal production in coming years in the Latin American nation. (Reuters)
