The coal mine that turned into a gold mine for buyers
THE revitalised Blair Athol mine in central Queensland is delivering a profit of $22 for every tonne of coal it sells.
The mine, bought by Terracom for $1, is also expecting to add another $20 a tonne to that margin when it completes the development of its train load out facility at the mine site.
"The company's dedicated rail load-out facility is forecast to provide substantial additional operating cash flow and net profit before tax of $34 million per annum which will flow through to consolidated results,'' Terracom said.
Terracom said it had fully recommissioned and restarted the mine "on an extremely compressed timetable'' and had delivered a maiden operating EBITDA of $5.5 million.
It has also upgraded the reserve and resource to 18 million tonnes and adding another year to its mine life. It now has a expected mine life of nine years with production at 2mt a year. "The critical activity for the Blair Athol Mine is the construction and commissioning of a dedicated train loadout facility."
"The TLO construction work is well advanced including the mobilisation of Aurizon Network for the commencement of rail recommissioning works this week
"It is expected the TLO will be commissioned (including first train) in this March 2018 quarter.
"This load-out facility will have a substantial impact on the economics of the BA mine, forecasting to deliver an additional $20 per tonne improvement in margin.
"The commissioning of the dedicated rail load-out facility will allow the trucks which are currently transporting the coal to another rail load-out facility to be taken off the road.