TerraCom subsidiary Orion Mining has received formal indicative approval from Queensland's Department of Natural Resources and Mines (DNRM) to transfer the mining lease of Blair Athol Coal Mine in Australia.
Approval is subject to certain conditions for the central Queensland project.
TerraCom has informed the government that it is equipped to meet all the conditions. The company intends to advance the process of meeting all conditions to in order complete title transfer and then begin mining and rehabilitation activities at the site within this quarter.
TerraCom expects that the combined production from BNU HCC and Blair Athol mines will enable the company to strengthen its position in the coking and thermal coal markets.
Upon completion, Queensland Government will receive A$79.6m ($61.23m) from the Blair Athol Coal Joint Venture (BACJV) to complete the mine’s rehabilitation.
The acquisition comprises the mining lease with associated licences, land, site infrastructure, active contracts along with all mining plant and equipment. It also includes a dragline to provide TerraCom’s forecast production schedule and the progressive rehabilitation.
As part of the acquisition process, TerraCom will move its corporate office to Clermont.
TerraCom intends to start site rehabilitation spanning more than 50ha as it brings the mine back into production.
Blair Athol coal mine is expected to deliver nearly two million tonnes per annum over seven years. Its operation is scheduled to commence in the first quarter of this year.