The
money will be used for capital funding for the project.
Mining ceased at the Dartbrook project in 2007, when previous
owners Anglo American placed it under care and maintenance. Credit:Andrzej
Rostek via Shutterstock
Australian Pacific Coal
(AQC) has announced that it has secured A$75m ($50m) in preliminary debt
funding for the restart of its Dartbrook thermal coal mine.
The mine has not
produced coal since 2007, when it was put under care and maintenance by
previous owner Anglo American. AQC has a licence to operate
the mine until at least 2027, and states that it will resume operations at the
project by the end of 2023, with first coal sales and shipments set for Q1
2024.
The $50m in debt
funding was supplied by an unnamed global commodity trading company. AQC stated
that the project needs at least A$120m for capital funding and working capital
to ensure a restart in operations. AQC has already provided $12m of this, with
the $50m from AQC set to meet the estimated capital funding requirements
through until first coal production in Q4 2023.
AQC interim CEO Ayten
Saridas said of the project: “Whilst we have had to
rely on our own balance sheet to fund the restart activities to date, it has
enabled us to significantly de-risk the project and reflects positively on our
progress. In particular, the de-watering of the Hunter Tunnel has been
successfully delivered safely and on time.
“We have completed the
Operating Joint Venture Agreement and have developed a revised Mine Plan which
will result in improved yield potential and better product mix.”
The Dartbrook project
is a joint venture between AQC and Tetra, with AQC holding an 80% working stake in the project and
Tetra holding the further 20%. Remediation and refurbishment work at the mine
is already under way. The Hunter tunnel, which links the mine to the coal
handling and process plant, has already been successfully dewatered. Preparation is now
under way for the installation of conveyor belt infrastructure in the tunnel to
prepare it for a return to mining.