TerraCom subsidiary Orion Mining is officially the owner of the Blair Athol coal mine after the Queensland Government transferred the mining lease for the operation.
The mine will ramp up to its annualised 2Mtpa mining rate “very quickly,” according to TerraCom, with customers in North Asia already showing interest for the operation’s product.
Based on current prices, the company plans to export an estimated $1.2 billion in product from the mine over the next seven years.
Orion chairman and TerraCom board member, Jim Soorley, said: “the completion of transfer of the Blair Athol mining lease is not only great news for TerraCom but is great news for the community of Clermont and the state Queensland, with up to $80 million in taxes and royalties to flow from the re-opened mine operation and with the recommencement of rehabilitation activities.”
TerraCom acquired the coking coal mine for $1, while the Queensland Government will receive $79.6 million from previous owners, Blair Athol Coal Joint Venture, for rehabilitation of the mine.
The acquisition includes the mining lease, related licenses, land site infrastructure, active contracts and mining plant and equipment. TerraCom will rehabilitate more than 50 hectares at the site.
Meanwhile, TerraCom has appointed Wal King, the former chief executive officer of Leighton Holdings, to its board.
King will support TerraCom’s growth in becoming a large and strong coal mining company operating in Australia and Asia, the company said.