Australian firm Bowen Coking Coal has closed an $8m (A$11m) placement and received a $10.9m (A$15m) debt facility from a private credit institution to enable the restart of Queensland’s Bluff Mine.
The coal exploration company signed a deal last month to acquire the Bluff pulverised coal injection (PCI) mine from mining contractor MACA for A$5m.
Although the mine started coal production in the first quarter of 2019, it was placed on care and maintenance in December 2020 due to low coal prices.
Petra Capital handled Bowen’s equity raising and served as the sole lead manager and bookrunner.
Bowen Coking Coal has awarded a contract to CMC Group, in partnership with Comiskey Mining Services, to prepare the Bluff Mine for production that is scheduled in the first quarter of 2022.
Off‐site work has started, with mobilisation to site scheduled by the end of the year.
The Bluff Mine is estimated to host a 13.5Mt JORC Resource of ultra-low volatile PCI (ULVPCI) coal.
It is projected to have a 1Mtpa-1.2Mtpa run of mine over four to six years.
Bowen managing director Gerhard Redelinghuys said the acquisition and funding of the mine mark key milestones in its journey to becoming the next metallurgical coal producer in Australia.
Redelinghuys said: “We look forward to recommissioning and operating the mine in a safe and responsible way to deliver high-quality ULVPCI coal to our customers in the steel industry.
“Furthermore, we are delighted with the strong reception we received from the market for our inaugural debt facility and capital raising, which positions Bowen well as it transitions from coal explorer to multi-mine coking coal producer.”
Bowen is also planning to start mining work at the Broadmeadow East Project. This is subject to environmental approval that is anticipated by the end of this year.