The deal between TerraCom subsidiary Orion Mining and the joint venture was confirmed on July 4. Under its terms, it will receive A$80 million (US$59.9 million) from the BACJV to meet the rehabilitation liability for Blair Athol, which is now managed by Rio Tinto since it halted mining there in November 2012.
The mining lease and licenses as well as land, contracts and mining plant and equipment, including a dragline, are all part of the sale, along with site infrastructure such as offices, workshops and stores.
The acquisition is still pending approvals from the TerraCom board as well as each participant in the BACJV.
TerraCom is aiming to have the mine back in operation during the fourth quarter of this year at an annual rate of about 2 million metric tons (mt) using a staff of about 100. It will also rehab about 50 hectares (123.5 acres) of land in conjunction with the mine restart.
Blair Athol is considered to be one of Queensland’s oldest coal operations. TerraCom said it has been maintained in good condition since its closure.
TerraCom was rebranded from its former identity, Guildford Coal, in October 2015.