The Blair Athol coal mine has been sold to TerraCom subsidiary Orion Mining, with plans to restart mining.
TerraCom bought the mine from the Blair Athol Coal Joint Venture (BACJV) for $1, and will receive $80 million from BACJV for the mine’s rehabilitation liability.
This $80 million financial assurance for the rehabilitation will be held in a bank account controlled by Queensland’s Department of Environment Heritage Protection.
The acquisition includes the mining lease, licences, land, contracts, and all mining plant and equipment including the dragline.
The mine was bought from Rio Tinto by New Emerald Coal – a company created by Linc Energy – in 2014 after Rio closed the mine in 2012, after 30 years of production.
TerraCom plans to restart the mine this year, as well as rehabilitate around 50 hectares of the site.
Production is being scheduled around a rate of two million tonnes per annum, with a recommencement target of the last quarter of 2016.
The miner plans to employ more than 100 local people at the operation.
This is the second coal mine in Queensland to sell for one dollar.
The Isaac Plains coal mine was sold to Stanmore coal by Vale and Sumitomo due to low coal prices. It was rehabbed by Stanmore and reopened in May this year, with first coal produced in April.