Queensland resources minister Scott Stewart said the venture would create more than 150 jobs through investment in underground expansions and completion of rehabilitation obligations.
"With a predicted mine life of 22 years including rehabilitation, these are lasting jobs and will create long-term royalties that will benefit all Queenslanders," he said.
"This investment is a strong sign of the growing confidence in our resources sector as Queensland continues its road to economic recovery."
The Millennium and Mavis Downs mines will use a mix of open cut, high wall and underground mining methods to extract metallurgical coal.
The project will have a total production of 13.9 million tonnes of metallurgical coal during its lifespan.
Stewart said Queensland had the world's highest quality metallurgical coal.
"Even as the world transitions to renewables, metallurgical coal for steel will remain an essential and valuable international export commodity for Queensland," he said.
Mining operations at the Millenium and Mavis Downs mine will restart from July with production ramping up to 1 million tonnes per annum.
Coal washing will be undertaken at the Red Mountain Infrastructure coal handling and preparation plant via a fully executed toll washing and train loading agreement and rail and port capacity to support the mine plan will come as part of the transaction.
M Mining will be the joint venture manager and operator of the mine.
The operations have JORC Resources of 37Mt.
MetRes chairman Matt Latimore said the acquisition was a low capital, fast-to-market investment opportunity in high quality metallurgical coal supported by access to existing critical infrastructure.
Caledon Coal founder Peter Seear, who oversaw the acquisition and operation of the Cook mine for six years, will join the MetRes board, bringing extensive underground and auger mining expertise to the venture.
JV partner Stanmore will provide a $30 million finance facility, inclusive of a $15 million working capital debt facility.
The JV will assume rehabilitation obligations and with the restart of mining, M Mining will restart the rehabilitation activities.
"The acquisition and restart of Millennium and Mavis Downs Mine is a shot in the arm for Queensland's economic recovery and for Central Queensland and we are excited to work with our partners, regional stakeholders, local and state government and long-term customers in bringing this coal back to the market," Latimore said.
"This project will produce high quality metallurgical coal, which is in high global demand and remains an essential component of the steel making process. Queensland is a reliable and high-quality supplier."
