Glencore has begun a sale process for its Tahmoor underground mine in the NSW Southern Highlands.
The mine employs about 340 people, including contractors, and last year produced nearly 1.8 million t of saleable coking coal.
The company’s Tahmoor mine is an established, stable operation but has minimal operational synergies with the rest of our NSW coal business located in the Hunter Region.
In August 2016, Glencore announced that it would not continue mining beyond 2018 on the basis that ongoing operations would not meet our internal investment criteria. However, given the increase in coking coal prices, the company has recently recommenced development for additional longwalls blocks in the North West area. Glencore has also requested updated assessment requirements for the Tahmoor South Project.
Glencore believes the asset has a number of development options for the future and presents a potential buyer with the opportunity to establish or increase a strategic position in the Australian coking coal industry. The Tahmoor mine has:
- 57 million t of reserves and 650 million t total resource, presenting opportunities for significant future development.
- An experienced management team and a highly skilled workforce.
- A record of strong operational performance and cash generation throughout the commodity cycle.
- Efficient logistics and transport systems and established, long-term relationships with customers across Asia.
- Strong links with the local communities developed over almost 40 years of operation.
- Highly valued product in the market. It will be business as usual at the mine until and unless a sale is agreed.
Read the article online at: https://www.globalminingreview.com/finance-business/09052017/glencore-begins-sale-process-for-tahmoor-underground-mine-in-nsw/