By Ben Creagh

July 19, 2017 - The Blair Athol coal mine in Queensland, Australia is on track to be producing at full capacity before the end of this year, according to its owner.

TerraCom subsidiary Orion Mining has recommissioned the mine and expects to deliver first sales from the site next month.

Blair Athol, one of Queensland’s oldest coal mines, had been closed since 2012 when Rio Tinto put operations into care and maintenance.

Orion plans to ramp up production at the mine to the annualised rate of two million tonnes per annum of thermal coal early in the fourth quarter of 2017.

TerraCom reported: “Mining and rehabilitation activities have progressed on schedule to meet the first coal sale timeline.

“Bulk earthworks have commenced on the rehabilitation element of the operation, which is being conducted in accordance with the requirements defined in the environmental authority.

“Initial overburden has been removed and placed in its final position to facilitate the first coal extraction. The first month’s coal production has been surveyed insitu and the entire site is being readied for the first coal sale.”

Orion secured a deal to buy the Blair Athol operation for a nominal fee of $1 last year. The acquisition included the mining lease, related licenses, land, site infrastructure, active contracts, as well as all mining plant and equipment.