We are pleased to announce that TerraCom Ltd (ASX : TER) has acquired the Blair Athol Coal Mine, through its wholly owned subsidiary Orion Mining Limited, following grant of Title Transfer from the Queensland Government and completion of the Sale and Purchase Agreement with the Blair Athol Coal Joint Venture.
As the new owners of Blair Athol, the Company will move quickly to re-mobilise the plant and equipment on site that was part of the acquisition, allowing mining operations to commence in June 2017 and coal sales to follow quickly thereafter. Current forecast is to produce 1.9Mt of product in 2 the first full year from commencement of coal mining. The Company expects more than 600 direct and indirect jobs to be generated in the local and regional communities and will move the corporate office to Clermont to be close to the mine and demonstrating our commitment to support the local community.
The Company expects more than 600 direct and indirect jobs to be generated in the local and regional communities and will move the corporate office to Clermont to be close to the mine and demonstrating our commitment to support the local community.
About Blair Athol Coal Mine
TerraCom has acquired the Blair Athol Coal Mine for AUD$1 and the Queensland Government has received AUD$79.6m from the Blair Athol Coal Joint Venture (BACJV) to meet Blair Athol Coal Mine’s rehabilitation (which forms part of TerraCom’s financial assurance quantum of AUD$93.1m). The acquisition includes the mining lease, related licenses, land, site infrastructure, active contracts and all mining plant & equipment, including a dragline, to deliver TerraCom’s forecast production schedule and the progressive rehabilitation.
The acquisition of the Blair Athol Coal Mine is a significant milestone for TerraCom, bringing the following benefits:
- Progressive rehabilitation of one of Queensland’s oldest coal mines;
- The resumption of coal mining and export sales from the Blair Athol Coal mine providing the local, state and federal economies with increased economic activity, employment, royalties and taxation; and
- Forecast positive cash flow through a low overhead structure and operational efficiencies.
TerraCom plans to commence over 50 hectares of site rehabilitation while bringing the mine back into production. The operation, under TerraCom management, is planned to deliver approx. 2Mtpa over 7 years and ongoing progressive rehabilitation.
Above from Left : (1 & 2) The Blair Athol BE1370 Dragline, (3) Taking over our new asset (4) Equipment on site