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A coal mine in New South Wales, Australia is set to resume operations for the first time in over a decade after securing necessary funding for the restart.
Australian Pacific Coal said it received $60 million in funding from Vitol Asia, which will allow it to reopen the Dartbrook mine located in the Hunter Valley region of New South Wales.
The mine has been idled since 2006 but Australian Pacific Coal and its partners have been working to bring it back online since September 2022.
In August, Australian Pacific Coal received a non-binding letter of intent for $75 million in debt financing to restart Dartbrook.
The new funding for Dartbrook will cover all remaining capital expenditures required for the restart, including the first coal production, equipment procurement, completion of refurbishment works, and additional mining systems to ramp up to full capacity.
Australian Pacific Coal's interim CEO Ayten Saridas said Dartbrook is a tier-one asset and the deal with Vitol Asia validates the quality of the resource.
Over the past 12 months, Australian Pacific Coal has been focused on de-risking the Dartbrook Project and securing a debt financing solution provides the Dartbrook Project with the best opportunity for success and delivers the best outcome for our shareholders and stakeholders, she said.
Australian Pacific Coal expects an intensive capital works program will achieve first coal production from Dartbrook in Q1 2024.
The company also signed a coal sales and marketing agreement with Vitol Asia for all production from Dartbrook, including transferring sales rights to Vitol Asia during operations.
The restart plan for Dartbrook has been delayed several times previously by Australian Pacific Coal, including a commitment in February to commence production in December.
Saridas said she is very confident in achieving the company's latest target of coal mining at Dartbrook before the end of March 2024.
First coal sales from Dartbrook are expected to take place in April or May, with the coal expected to have a minimum calorific value of 5,500 kcal/kg NAR.
Dartbrook was originally owned by Anglo American and sold to Australian Pacific Coal in 2016.
(Writing by Alex Guo Editing by Harry Huo)
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