After nearly two decades, the Dartbrook mine in New South Wales, Australia, will resume operations after Australian Pacific Coal and JV partner Tetra Resources finalized a three-year, US$60 million (A$90 million) funding package with Vitol Asia.
The companies said the funding will cover forecast restart capital expenditure at Dartbrook through to first coal and the acquisition of additional mining systems during ramp-up to achieve full capacity.
“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,” said Australian Pacific Coal Interim CEO Ayten Saridas.
“With the restart funding package committed, we can now accelerate work on site and complete underground works, including the installation of the new conveyor system, refurbish the CHPP and load out facilities, and procure the continuous miners and additional mining equipment.”
Additionally, the joint venture said it has entered into a coal sales and marketing agreement with Vitol for all Dartbrook coal production.
Dartbrook, which is located 4 kilometres west of Aberdeen, has been idle since 2007 when former owner Anglo American shut down operations. It produced a high-quality thermal coal that is typical of the Hunter Valley. The Dartbrook Joint Venture comprises Australian Pacific Coal (80%, via subsidiaries) and Tetra Resources (20%, via subsidiaries).
Sources: Australian Pacific Coal and Australian Financial Review