TerraCom to acquire Blair Athol Coal Mine
TERRACOM Ltd has reached an agreement to acquire the Rio Tinto Blair Athol Mine for the price of $1.
The agreement between TerraCom Limited and the Rio Tinto managed Blair Athol Coal Joint Venture is subject to certain conditions including TerraCom to receive AUD$80m from the BACJV to meet Blair Athol Coal Mine's rehabilitation liability as determined by Queensland's Department of Environment Heritage Protection in November 2015.
A spokesperson for Rio Tinto confirmed the Rio Tinto managed Blair Athol Coal Joint Venture is in discussions with a potential purchaser regarding its interests in the Blair Athol mine.
"These discussions may or may not result in an agreed transaction and are subject to the execution of a binding sale and purchase agreement and approvals from the Joint Venture participants and the Queensland Government," they said.
Rio Tinto ceased mining at Blair Athol in November 2012, after 30 years of operation.
A previous Sale and Purchase Agreement with New Emerald Coal Ltd was terminated after they were unable to meet conditions of the agreement.
The final execution of a binding sale and purchase agreement requires approvals from the TerraCom Board, and each BACJV participant.
TerraCom plans to submit an application for the transfer of the Mining Lease for the consideration of the Minister for Natural Resources and Mines.
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.
TerraCom plans to bring the mine back into production at a rate of two million tonnes per annum of coal with a target of recommencing operations in the 4th quarter of 2016.