TerraCom has announced it’s wholly owned subsidiary Orion Mining will purchase the Blair Athol coal mine in Queensland from the Blair Athol coal joint venture (BACJV).
At completion of the acquisition TerraCom will receive $80m from the BACJV to meet Blair Athol coal mine’s rehabilitation liability as determined by Queensland’s Department of Environment Heritage Protection in November 2015.
The acquisition includes the mining lease, licences, land, contracts, and all mining plant and equipment.
“TerraCom plans to initially commence over 50 hectares of the site rehabilitation it has assumed, while bringing the mine back into production,” the company said.
Production has been scheduled at a rate of two million tonnes per annum of coal with a target of operations recommencing in the fourth quarter of 2016.
In July, TerraCom announced plans to acquire the mine for $1.
The mine was closed by Rio Tinto in 2012 after three decades of operation due to low coal prices.
One hundred new jobs are expected to be created.