Mining giant Xstrata says it plans to build a $927.6m coal port at Balaclava Island in Queensland, Australia.

The proposed coal export terminal is expected to have an export capacity of up to 35 million metric tonnes of coal a year and will ship coal from the Bowen and Surat basins in Queensland.

Construction of the port could start in 2012 and the facility, which will accommodate vessels of up to 110,000t, is expected to be operational by 2014.

Xstrata has filed documents with the Federal Department of Environment and has stated that existing port capacities and known future port expansions will not handle its production growth expectations, according to Reuters.