The mine planned to operate at 2 million tonnes per annum for seven years with first coal sales in July, TerraCom said.

It said Blair Athol had a 44Mt JORC 2012 resource, which provided potential for additional production from the mine.

“It is positioned well on cost curve set to deliver strong margins,” Terracom said in an analysts’ presentation.

“Recommissioning and working capital costs of Blair Athol are fully funded from US$12 million funding facility plus contractor working capital arrangements of A$11.6 million.”

“There is also organic expansion potential to combine Blair Athol with neighbouring properties to give a 30+ year life.”