First coal sales in 4 weeks
Chinese-owned contractor stumps up $9.2 million to get dragline ready
Wednesday 05 July 2017
Contractor Link Mining Services (LMS) has spent just over $9 million on getting mothballed machinery at Blair Athol coal mine ready for work, as the mines owner Terracom prepares for first coal sales in August.
In a statement this week, the Managing Director of LMS Mr Brad Marshall said the dragline at Blair Athol was nearly ready.
“The dragline has been operationally tested and is in the process of being brought up to full production levels with the existing spares on site,” he said.
“[We have] been progressively recommissioning the remainder of the mobile fleet and bringing all of these online ready for operational activity.
“The CHPP has been fully assessed, and a recommissioning project commenced to ensure it will be online and operational for the first scheduled coal wash.”
John Holland has owned Link Mining Services since 2007. Then in 2015, John Holland themselves were purchased by the Chinese Government-owned China Communications Construction Company.
In late 2016, before they had finalised the mining lease for Blair Athol, Terracom announced they had struck a deal that would see LMS spend $11.6 million on getting the machinery at Blair Athol ready for work in return for securing a five-year all of mine operational mining contract.
“$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,” TerraCom Executive Chairman Cameron McRae said at the time.
“The provision of the funding has resulted in Link Mining paying for all material mining and beneficiation recommencement costs, thereby reducing Terracom’s exposure substantially for recommencement cost activities.”
TerraCom through its wholly owned subsidiary Orion Mining Pty Ltd says it’s on track to deliver first sales in August 2017 and will then quickly ramp production up to two million tonne per year by September.