Dartbrook underground mine, which was moth-balled for close to two decades, is set to reopen after a funding deal was struck between the mine's owners and a new investor.
Australian Pacific Coal (AQC) recently finalised a new three-year US$60 million debt facility with Vitol Asia, which will allow the project to reopen.
The money will be used to complete remediation work, and acquire equipment plus extra mining systems needed while ramping-up to full capacity.
"[The] package we have agreed with Vitol opens the door for Dartbrook to restart production after 18 years in care and maintenance," AQC interim chief executive Ayten Saridas said in a statement.
"We can now accelerate work on-site and complete underground works, including the installation of the new conveyor system, refurbish the Coal Handling and Preparation Plant, and load out facilities - and procure the continuous miners and additional mining equipment."
Work is expected to begin before the end of March 2025.
The companies been working to recommission the mine since September 2022.
Dartbrook was put into care and maintenance by its previous owner Anglo American in 2006 following multiple workplace accidents and low commodity prices.
But it returned to focus in 2015 when coal entrepreneur Nathan Tinkler spearheaded AQC's successful purchase of the asset at the bottom of the coal price downturn.
Mr Tinkler left AQC when declared bankrupt in early 2016
The Independent Planning Commission approved an amended application to reopen the mine in 2019, despite community opposition.
The conditions stipulate that the mine will have to use the Hunter Tunnel rather than transport coal by truck. It must also use existing processing infrastructure and cannot mine the Piercefield Seam to reduce groundwater impact.
The coal handling processing plant will be recommissioned and ventilation circuit reestablished. This is promised to help reinforce the roof and ribs.
Meanwhile, Australian Pacific Coal has confirmed that thermal coal produced from Dartbrook conforms to Newcastle coal specifications, strengthening the project's export potential to key Asian markets.
A bulk sample was cut from Dartbrook's Kayuga seam in mid-July and sent for laboratory testing, with results confirming the product meets the required specifications for the Newcastle coal benchmark, widely known as NEWC 6000.
Testing for metallurgical applications is ongoing, with updates expected in the near future.
"Confirmation of NEWC 6000 spec ensures we can market Dartbrook product to customers in key Asian export markets once we have completed the planned refurbishment of the CHPP (coal handling and preparation plant), which will be funded by the existing restart capex facility," Ms Saridas said.
"Following the major milestone of commissioning the conveyor system and successfully producing coal to surface, achieved in early September, Dartbrook has now entered the ramp-up phase. The Dartbrook joint venture is targeting commercial production of unwashed coal before the end of 2024."
