PERTH (miningweekly.com) – ASX-listed junior TerraCom is one step closer to restarting the Blair Athol coal mine, in Queensland, after the state government advised the company that it was “minded to grant an indicative approval subject to conditions” for the transfer of the mining lease.
TerraCom in 2016 inked a binding sales and purchase agreement with mining major Rio Tinto to acquire the Blair Athol mine for A$1.
Under the agreement, TerraCom, a subsidiary of Orion Mining, would receive A$80-million from the mining giant to meet rehabilitation costs at the site.
TerraCom said on Friday that the proposed conditions set by the Queensland government could be met by the company, with TerraCom hoping to have a final decision on the indicative approval shortly.
The ASX-listed company was planning to start over 50 ha of site rehabilitation while the Blair Athol mine was brought back into production, with the mine expected to deliver some two-million tonnes a year of coal over a seven-year mine life.
TerraCom is hoping to restart operations in the first quarter of this year.