TerraCom signs mining contract with Link Mining

The companies are now finalising a detailed mobilisation and integration plan to transition the mine from its current management to the TerraCom and Link Mining team. The contract will become effective on transfer of the mining lease.

A key aspect of the contract is the provision – through Link Mining – of funding totalling AUS$11.6 million. AUS$4.1 million of this will be paid to TerraCom to be used for general working capital requirement with the balance being used to cover the costs of restarting mining and processing operations.

According to TerraCom, the provision of funding has resulting in Link Mining paying for all material mining and beneficiation recommencement costs, “reducing TerraCom’s exposure substantially for recommencement cost activities.”

TerraCom recently announced the acquisition, through its subsidiary, Orion Mining, of the Blair Athol mine from the Blair Athol Coal Joint Venture. TerraCom plans to restart production at the mine at an initial rate of 2 million tpy with a target of first coal sales by the end of 2016.

The restart of operations at the mine will also include the rehabilitation of 50 ha. of the mine site, while the mine is brought back into production, with progressive rehabilitation of the site as mining continues.