TerraCom subsidiary Orion Mining has reached agreement to buy the mothballed Blair Athol coal mine for $1, with the current owners providing $80 million to meet the mine’s rehabilitation liability.
TerraCom – formerly known as Guildford Coal – said it planned to commence more than 50ha of site rehabilitation while bringing the mine back into production in the last quarter of this year.
The acquisition includes the mining lease, licences, land, contracts and all mining plant and equipment including a dragline to deliver the forecast production schedule and the progressive rehabilitation.
All site infrastructure including offices, workshops and stores associated with the mine are also included in the transaction.
The Blair Athol coal mine, near Clermont, ceased production in late 2012.
TerraCom said production was being scheduled around a rate of 2Mtpa of coal and it was estimated more than 100 local people would be engaged at the operation, with a focus on regional employment.
More at http://terracomresources.com/