New owner TerraCom has executed a contract with Link Mining Services to recommence operations at the mothballed Blair Athol coal mine in central Queensland.
The agreement is for five years and will become effective on mining lease title transfer.
TerraCom said it was working with Link Mining to finalise a detailed mobilisation and integration plan for Blair Athol to ensure a seamless transition from the management of current owners BACJV to the new operators.
Link Mining is providing $11.6 million for material mining and beneficiation recommencement costs at the site, in addition to $US12 million TerraCom raised recently to support the commissioning of the Blair Athol coal mine.
TerraCom plans initially to commence more than 50ha of site rehabilitation while bringing the mine back into production.
Production is being scheduled around a rate of 2Mtpa of coal with a target of recommencing operations and achieving first coal sales by the end of 2016.
TerraCom also recently announced plans to investigate the construction of a 60MW solar power station on rehabilitated land at the Blair Athol site.
TerraCom chairman Cameron McRae said the Quantum Group from Singapore would work with GHD in Queensland to initially plan the solar power system.
“TerraCom is keen to play a role in helping the Government deliver on its renewable energy targets. Blair Athol is well placed to achieve this due it’s to close proximity to the electricity grid,” he said.
“The Quantum Group are industry leaders in alternative energy generation and we are very pleased to announce that Queensland energy expert Mr. John O’Brien shall lead the planning from GHD.”
Mr McRae said that TerraCom was awaiting Queensland Government approvals for the Blair Athol lease to be transferred from the current owners and that as soon as permission was granted, it would move quickly to commence rehabilitation and mining operations.