Jobs, new life in mine to drive $133m back to state
TWO years have been added to the expected lifespan of the Blair Athol Coal Mine and the 300 jobs it would support, should it receive all ticks of approval required to re-open.
TerraCom has flagged its intention to buy the coal mine, one of the oldest in Queensland, from current owner Rio Tinto.
A condition of the sale is that Rio Tinto would transfer $80m into a bank account controlled by the Queensland Government for the mine's eventual rehabilitation.
However the sale is still waiting on approval from the state government.
On Monday morning TerraCom executive chairman Cameron McRae announced the predicted lifespan of the mine had been extended from five to seven years.
This followed a review that found there was 44 million tonnes of resource available at the mine, up from a previous estimate of 10.19mt.
The company plans to mine 2mt each year.
"The resource upgrade to 44mt provides the potential to increase the mine life further should some of this additional resource be able to be converted into reserve," Mr McRae said.
The seven-year lifespan would see $133m flow back to the Queensland Treasury in royalties.