Dartbrook hopes to restart within 12 months
PERTH (miningweekly.com) – ASX-listed Australian Pacific Coal on Tuesday told shareholders that the joint venture (JV) managers of Dartbrook coal operations were hoping to restart underground mining within the next 12 months.
Australian Pacific’s comments come following an announcement by the New South Wales government that it would prohibit future opencut mining operations at Dartbrook, by way of amending the state planning policy.
Australian Pacific told shareholders on Tuesday that despite the government’s position on opencut mining, the company’s plans to development an underground mining project at Dartbrook would go ahead, and that the development of the underground mine was supported by the state government.
The company recently completed a A$100-million recapitalisation of its balance sheet, and struck a deal with two of its suitors and its creditor and shareholder Trepang Services, which could see the Dartbrook mine being re-commissioned as a coal-producing asset.
Under the strategic partnership, M Resources and Tetra would each earn a 20% direct joint JV interest in the Dartrbook mine, while Trepang would earn a 10% free-carried direct interest in the JV if it agrees to extend the existing access and compensation agreement with Australian Pacific, as well as agreeing to various easement arrangements and the transfer of water rights on mutually agreeable terms, that would allow underground mining to continue for the duration of mine life extension approvals.
“The JV managers plan to restart the mine within the next 12 months in accordance with the MOD7 approval for underground mining and the JV will invest considerable funds in the Dartbrook project, which in turn is expected to benefit the local communities of the Upper Hunter and Muswellbrook councils,” Australian Pacific said on Tuesday.
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