Dartbrook coal mine near Muswellbrook is a step closer to reopening, 18 years after it was placed into care and maintenance.
Australian Pacific Coal and Tetra Resources announced on Tuesday that they had finalised a three year US$60 million debt facility with energy and commodity group Vitol Asia to cover the cost of reopening the mine through to first coal.
The funding will cover equipment acquisitions, the completion of remediation work and the acquisition of additional mining systems during ramp-up to achieve full capacity.
The companies been working to recommission the mine since September 2022.
"This is a landmark event for Australian Pacific Coal, our shareholders, and the Dartbrook mine," Australian Pacific Coal interim chief executive officer Ayten Saridas said.
"Our ability to secure debt funding for Dartbrook during a period of high inflation and global tension is testament to the quality of the project, the vision and work ethic of the team of people bringing it back to market, and the commitment of our shareholders."
The debt facility will be structured as a loan notes issuance agreement and will involve a three-year facility with repayments commencing after an initial grace period to allow for mine production startup.
"From the moment we engaged with Vitol, they have seen the potential value we can create at Dartbrook," Saridas said.
"They have been thoroughly professional during this process and we are looking forward to working closely with them in coming years.
"Vitol will play a key strategic role in the development of the project following their appointment as sole marketing agent for Dartbrook coal. Dartbrook product is very high quality and we anticipate strong interest from export markets.
The schedule to first coal is under review and will be announced in AQC's quarterly report later this month, Saridas said.
The Independent Planning Commission approved an amended application to reopen the mine in 2019, despite community opposition.
The conditions stipulate that the mine will have to use the Hunter Tunnel rather than transport coal by truck. It must also use existing processing infrastructure and cannot mine the Piercefield Seam to reduce groundwater impact.
