The Australian reported Jury, backed by experienced mining investors, bought the mine for a fraction of the original price Macquarie paid.

Jury was managing director of the Hunter Valley mine until he resigned in April after Macquarie put the mine in receivership.

The Newcastle Herald said unsecured creditors, mostly small Hunter companies, will get part of the money they are owed and also have the prospect of doing remunerative work at the operation for the new owners.

The bank took control of the mine in December 2002 and initiated an inquiry which resulted in the mine’s closure, The Australian said. The report was opposed by the mine’s board, mine management and state and federal politicians. At the time the closure decision was attributed to low coal prices and a strengthening Australian dollar.

Before the sale goes through to Jury’s company, Newpac, it must gain approval from the NSW Minister for Mineral Resources and head lease holder Iluka Resources, The Australian said.

Iluka spokesman Michael Brown told The Australian the company would examine Newpac and its financial backing before transferring the sublease to the new company.

The Nardell bord and pillar mine, near Singleton, opened in August 2001, and at the time was producing around 5000 tonnes per week of high-grade semi-soft metallurgical coal. Estimated reserves measured 235Mt.

The main body of the lease, to the north-west, was thought to be amenable to longwall mining with recoverable resources of over 200Mt. The long-term plan was to access reserves beneath the now closed Ravensworth open cut mine and eventually introduce longwall equipment.