Blair Athol cheques exchanged
A new year and new jobs for Clermont miners
Wednesday 31 May 2017
Short of an eleventh-hour disaster and depending on when you read this, Terracom is now the new owner of the Blair Athol Coal mine near Clermont.
In a short statement this week Terracom said it would finalise the purchase of the mine on Wednesday the 31st May and would be re-mobilising plant and equipment shortly after.
Wholly owned subsidiary of Terracom, Orion mining, will be the corporate entity that manages Blair Athol, and Chairman of Orion Mining and TerraCom Board Member, Mr Jim Soorley said jobs would be available in days.
“We plan to recommence mining in June with more than 600 direct and indirect jobs expected to be generated in the local and regional communities,” he said.
“We will move our corporate office to Clermont to be close to the mine and demonstrate that we are serious about our commitment to support the local community.”
According to TerraCom, they have had strong interest from Asian customers for their Blair Athol coal already, and expect to export around $1.2 billion worth in the next seven years.
Delays in getting approval from the state government stopped Terracom meeting their original objective of a restart to mining at Blair Athol by last Christmas.
In September 2016, Terracom reached a binding agreement to buy the mothballed Blair Athol coal mine from Rio Tinto, for a headline-making $1 nominal price, plus tens of millions of dollars worth of undisclosed liabilities.
Not long after, Terracom announced that Blackwater based Link Mining would be the main contractor at the mine and they would be carrying some of the financial risks as primary mining contractor for the next five years.
According to TerraCom Executive Chairman Cameron McRae, the five-year deal with Link Mining will cover all operational aspects.
“A key element of the contract is the provision through Link Mining of $11.6 million,” he said last year.
“$4.1 million will be paid to TerraCom for general working capital requirements, and $7.5 million will be paid for upfront recommencement mining and beneficiation costs.”