Mine approval imminent
STRONG signal that the mine department won’t block restart of one of CQ’s biggest mines.
Wednesday 08 February 2017
A restart of mining operations at the Blair Athol coal mine near Clermont have taken a big step forward this week.
Prospective new operator Terracom, have received a letter from the Queensland Government indicating they will approve the transfer of the mining lease to Terracom as the mines new owners.
Delays in getting this approval have stopped Terracom meeting their objective of a restart to mining at Blair Athol by Christmas.
However, the company anticipates they will be able to get things moving on the ground soon.
“TerraCom is pleased to announce that its wholly owned and operated subsidiary, Orion Mining Pty Limited, has received advice from the Queensland Government that it's “…minded to grant an indicative approval subject to conditions …” for the transfer of the mining lease for Blair Athol,” Executive Chairman of the company Cameron McRae said.
“TerraCom has advised the Queensland Government that it can meet the conditions, which the TerraCom board does not believe are onerous.
“TerraCom is of an opinion that a final decision on the Indicative approval will be made shortly by the Queensland Government.”
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.