A mothballed fossil fuel development is on-track to restart production before the end of 2023.
Australian Pacific Coal (AQC) recently confirmed new funds will help quickly revive its Dartbrook Coal Project, 122km northwest of Newcastle.
The proponent already has $20 million of debt finance. A further $75M will help cover the cost of procuring equipment and refurbishing facilities needed to achieve first coal. Initial working capital requirements are expected to cost between $20M and $25M. QMEB can reveal production could start as early as September 1.
“AQC has received a non-binding letter of intent from a top-three global commodities trading firm for up to US$50M (approximately A$75M) in debt funding,” the company said in a public statement.
“We are on track to commence mining operations in the fourth quarter (Q4) of 2023 and anticipate first coal sales/shipments in Q1 2024. Whilst we still have much work to deliver on our plans AQC and our joint venture (JV) partner Tetra remain focused on the restart of the Dartbrook mine,” interim CEO Ayten Saridas added.
The operation has been under care and maintenance since 2006, following multiple workplace accidents and low commodity prices. The Coal Handling Processing Plant will be recommissioned and ventilation circuit reestablished. This is promised to help reinforce the roof and ribs.
AQC previously struck a deal with resources mogul Nathan Tinkler, M Resources, Evolution Capital, and a JV between Tetra Resources and Javelin Private Capital Group.