Millions for mine approval
Terracom keen to start mining after meeting key financial commitment.
Wednesday 05 April 2017
Terracom has secured the last remaining finance they need to finalise the mining lease for the Blair Athol mine near Clermont.
In a statement this week the company said it had found the money it required to satisfy the government.
“Wholly owned and operated subsidiary, Orion Mining Pty Limited (Orion), has secured the $13.5m required to facilitate the transfer of the mining lease for the Blair Athol Coal Mine in Central Queensland,” they said.
“This funding, which will have no dilutive impact on shareholders, should enable Orion to satisfy the conditions associated with the indicative approval for the transfer of the Blair Athol mining lease and hence enable commencement of mining and rehabilitation activities at Blair Athol Mine.”
This announcement comes a month after the company told shareholders that subject to finance the government had indicated it was happy for them to take over operations at the Blair Athol mine formerly owned by Rio Tinto.
Delays in getting this approval from government have stopped Terracom meeting their original objective of a restart to mining at Blair Athol by last Christmas.
However, the company anticipates they will be able to get things moving on the ground soon.
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.
Also part of the deal was an $80 million contribution, by Rio Tinto to the significant rehabilitation costs associated with the mine.
If all goes as planned, Terracom says it will move its corporate head office to Clermont and get busy putting the existing dragline and truck fleet back to work, selling coal into a robust market as soon as possible.
Terracom has reviewed and revised the estimates of how much coal exists at the Blair Athol coal deposit to a JORC measured resource of around 12 million tonnes.The company says restarting the mine will generate 300 jobs.