The Blair Athol Coal Mine, near Clermont, has a new owner after Linc Energy sold it, along with all of their other conventional coal assets, to United Mining Group.
Other assets in the sale include Linc’s Pentland and Dalby development projects, the Teresa development project and all greenfield exploration tenures in the state.
In a statement, United Mining Group’s Managing Director Gary Williams said his company would continue with plans to re-open the Blair Athol mine.
“United intends to follow-on from the good work started by NEC (new Emerald Coal) in its preparations for their commencement of operations at Blair Athol and plans to continue with development of Teresa as its next mine into production,” Mr Williams said.
“United is continuing with its aggressive growth plans and is looking for additional synergistic acquisitions over the coming months,”
“The acquisition of Linc Energy’s conventional coal assets will provide a platform on which United Mining Group plans to build a substantial Australian coal portfolio over the coming years.”
Despite the sale, Linc will still enjoy future earnings from the project through a Revenue Sharing Arrangement with operators, New Emerald Coal (NEC), a wholly-owned- subsidiary of Linc Energy.
Under the Agreement, “…the Company receives an indexed US$1.00 per product tonne of coal sold from the Teresa Project and Pentland Project, and an indexed US$0.50 per product tonne of coal sold from the Blair Athol Project.” A statement released by the company said.
Linc Energy’s CEO and Managing Director, Mr Craig Ricato said the sale would allow the company to maintain focus on their core business of conventional and unconventional oil and gas.
“In addition, it reduces our cost base and development capital requirements, whilst the retention of the Revenue Sharing Agreement ensures that the Company will significantly benefit from future development of these assets when the coal market improves over the coming years,” Mr Ricato said.