By Melanie Burton; Editing by Stephen Coates
May 1, 2023 - Australia Pacific Coal is on track to restart a thermal coal mine in New South Wales state in the fourth quarter after it secured a supply agreement with a global coal buyer, it said on Monday.
The miner has been restructuring its operations and looking for finance as it readies to produce 3 million tonnes per year of coal from its mine in the Hunter Valley which has been closed since 2006. In March it had said it expected to restart in the second half of 2023.
“The Dartbrook Joint Venture is currently finalizing funding arrangements to meet future restart capex and working capital needs,” Australia Pacific Coal said in a release to the securities exchange.
Credit: Australia Pacific Coal
Surging prices for coal last year have led to some new coal mines ramping up after the war in Ukraine exacerbated a supply shortage brought on by growing reluctance from climate conscious investors to funding new fossil fuel projects.
A significant portion of the project’s expected funding will be linked to a new coal marketing and supply agreement, and negotiations with an international third party with extensive global coal marketing experience are in the final documentation stage, it said.
“Once finalized, this agreement and associated funding will materially de-risk the project and provide a clear pathway for additional funding.”
As part of its restructure Australia Pacific Coal will increase its direct working interest in the project from 50% to 80% and its net economic interest will increase from 50% to 70%, it said.