The open cut mine’s production peaked at 11.3 million tonnes in 2009 with the workforce transitioning to the adjacent $US1.29 billion Clermont mine in the following year, with Rio reportedly so far receiving low bids for the asset.

Linc said there would be no upfront cost to acquire Blair Athol, which includes the mining tenure, onsite assets and infrastructure.

The Blair Athol Coal Joint Venture has also agreed to contribute to required site rehabilitation, which will occur in 2016-19.

However, Linc still needs to strike commercial agreements over securing rail and port capacity to export through Abbott Point, as well as over workforce accommodation and train-loading capacity.

“Completion of the acquisition is conditional upon finalisation of these arrangements together with the satisfaction of relevant approvals and other customary conditions,” Linc said.

The mine was closed in November and Linc is expecting its proposed acquisition to become unconditional within six months with mining to restart shortly after.

Linc will target up to 3 million tonnes per annum of saleable coal production for the remaining three years of mine life.

Linc energy president of coal Michael Mapp said the acquisition offered a unique opportunity to add an established asset to its New Emerald Coal subsidiary with “minimal efforts and costs to restart the mine”

“New Emerald Coal will reopen the mine once the tenure has been transferred, creating over 100 jobs at the mine site near Clermont in Central Queensland,” he said.

“Linc Energy has a proud history of investing in the local communities in which we operate, and New Emerald Coal will work to fill these jobs locally wherever possible.”

The BACJV is owned by Rio Tinto Coal Australia, Leichardt Coal, J-Power and JCD Australia.