Central Queensland coal mine to reopen in June, brings 600 jobs

Coal mine (2) — A dozer unloads wheat next to a ship at Mundra Port in the western Indian state of Gujarat, April 1, 2014. Reuters/Amit Dave

A coal mine is slated for reopening in Central Queensland, which is expected to create at least 600 jobs. Blair Athol, the state’s first open cut coal mine is scheduled to reopen next month.

Junior miner TerraCom Limited acquired the Blair Athol coal mine, yet the process of transfer was dependent on approval from the State Government. TerraCom has reportedly alerted the ASX that Orion Mining had met all the conditions and the transfer from the Blair Athol Joint Venture.

Jim Soorley, former Brisbane lord mayor and a TerraCom board member, said the approval would result to a significant boost to the Clermont community. In a statement to the ASX, he disclosed a plan to recommence mining in June which is expected to spawn more than 600 direct and indirect jobs in the local and regional communities.

He also revealed that their corporate office will be transferred to Clermont so it will be close to the mine. Soorley also assures that they will continue to display serious commitment in supporting the local community.

TerraCom previously disclosed that there would be 150 direct positions at the mine and additional 450 flow-on jobs in the region. If current coal prices remain stable, Soorley forecasts that the reopened mine will contribute up to $85 million in taxes and royalties to Central Queensland.

“TerraCom has had strong interest from customers in North Asia for Blair Athol Coal,” The Courier Mail has quoted him saying.The news outlet has learned that the agreement to transfer ownership of the mine also included $80 million from its former owners to be sent into a trust fund handled by the Department of Natural Resources. The amount was reportedly intended to pay for the rehabilitation of the mine.

Orion Mining, a subsidiary of ASX-listed TerraCom, reportedly spent another $13.5 million, which was sent to the Department for rehabilitation costs. Per australianmining.com.au, it secured a deal with the Blair Athol Coal Joint Venture last year to purchase the Bowen Basin coking coal operation for a nominal fee of $1.

In 2012, the Blair Athol mine was shut down. It was said to be under care and maintenance mode. The company says it is looking forward to “progressive rehabilitation” of the mine site after operations recommence. Soorley said TerraCom had obtained strong interest from customers in North Asia for coal from Blair Athol. It looks forward to produce at least two million of coking coal per annum. For other coal mining news outside Australia, see video below.