Orion is proceeding to complete the title transfer process.
TerraCom director Jim Soorley said the approval meant there would be up to $85 million in taxes and royalties to flow from the reopened operation.
“We plan to recommence mining in June with more than 600 direct and indirect jobs expected to be generated in the local and regional communities,” he said.
“We will move our corporate office to Clermont to be close to the mine and demonstrate that we are serious about our commitment to support the local community.”
Soorley said TerraCom had strong interest from customers in North Asia for Blair Athol Coal.
“Over the next seven years we plan to export $1.2 billion in product – assuming current prices – delivering enormous value to TerraCom shareholders,” he said.
“The transfer has been subject to an extensive and exhaustive process of review with numerous state government agencies confirming that TerraCom has the human, technical and financial capacity to operate Blair Athol.
“Coupled with $93.1 million in financial assurances, the approval is positive proof that TerraCom has the capacity to successfully rehabilitate and mine Blair Athol.”
Soorley said the combination of TerraCom’s operating BNU Coking Coal Mine in Mongolia and the Blair Athol Mine in Queensland would allow TerraCom to capitalise on the strong international coal coking and thermal coal markets.
“This calendar year TerraCom has mined more than 150,000 tonnes from our BNU Mine as part of its 5.5 year contract with Kingho China,” he said.
“The company is very excited that next quarter it should have revenue from its BNU coking coal mine in Mongolia and Blair Athol thermal coal mine in Queensland.”
