The Blair Athol mine has received a two year mine life extension, with the reopening expected to create up to 300 jobs for Queensland’s Clermont community.
The mine will now have a seven year mine life, which is estimated to provide more than $217 million to the state government treasury.
This comes after a review of the project by Xenith Consulting which reinstated and approved the total JORC Reserves to 13.5MT and total JORC Resources to 44Mt.
TerraCom executive chairman Cameron McRae said the resource upgrade has the potential to increase the mine life further “should some of this additional resource be able to be converted into reserve”.
The mine closed in 2012, after nearly 30 years of operations, with TerraCom putting in a bid acquire it from Rio Tinto. If the sale is approved, one condition is that Rio will transfer $80 million to a bank controlled by the state government for the mine’s rehabilitation, according to The Gladstone Observer.
TerraCom plans to commence more than 50ha of site rehabilitation while bringing the mine back into production once the acquisition is complete.