The troubled Dartbrook, which has been in care and maintenance since 2006, will be converted from an underground thermal coal mine to an open cut mine in the Hunter Valley, according to AusPac.

“The open cut operations will target a minimum 20-year mine life, subject to relevant approvals, and is expected to be favourably considered due to the approvals of adjacent existing open cut mines, with the co-existence of mining and agriculture,” it said.

“The acquisition includes significant land ownership comprising the majority of the open cut potential.”

Under the deal AusPac will have to pay $25 million up front and raise a further $30 million to pay for the mine. This will be a challenge for Tinkler, who famously raised the funds to buy the Maules Creek mine in 2008 from Rio Tinto. This was the major asset in his Aston Mining company and later Whitehaven Coal after he sold out of Macarthur Coal.

AusPac has reached a binding agreement to acquire an 83.33% interest in the Dartbrook Joint Venture through the purchase of all of the shares on issue in Anglo Coal, a subsidiary of Anglo American, Tinkler said in a statement.

“The Dartbrook JV presents a unique opportunity to acquire a tier 1 asset that is not only strategically located, but also well-equipped with existing infrastructure and facilities,” he said.

“We firmly believe in the resilient demand for high energy low ash thermal coal, as concerns about greenhouse emissions increase. Thermal coal will remain one of the core sources for energy production and if we can position this asset to be in the lowest cost quartile we are well placed to ride on that demand.”