TerraCom Limited has provided an update on progress according to plan of both mining operations at NU Coking Coal Mine in Mongolia and Blair Athol Thermal Coal Mine in Queensland and is on target to deliver the annualised production rates from both mines which is combined 3.5 million tpy.
The successful progress according to plan along with the completion of the Balance Sheet Restructuring announced to the market on the 17 June 2017 strongly positions TerraCom to capitalise on the relatively strong coking coal markets this financial year and thereby deliver substantial value to its shareholders.
Blair Athol thermal coal mine
TerraCom through its wholly owned subsidiary Orion Mining Pty Ltd has successfully recommissioned the Blair Athol Coal and is on track to deliver first sales in August 2017 and will then quickly ramp up the 2 million tpy annualised rate in early 4Q17.
The company has successfully met a number of the milestones for the drawdown of its previously announced prepayment facility. As a result of this, the company has receipted US$6.0 million of the US$9.0 million facility.
The company has received AUS$9.2 million of the AUS$11.6 million in finding through the appointed contractor (Link Mining Services Pty Limited) to fund the recommissioning and ramp up to full production. The finding has also enabled TerraCom to acquire from Sedgman Pty Limited the Coal Handling and Preparation Plant (CHPP) currently located onsite at BA, which will enable the Company to meet customer requirements in various segments of the thermal coal market to maximise value of the coal produced at the Blair Athol Mine.
The Managing Director of the Link Mining Service Limited, Mr Brad Marshall said:
“The dragline has been operationally tested and is in the process of being brought tp to full production levels wit hthe existing spares onsite. The operation has been progressively recommissiong the remainder of the mobile fleet and bringing all of these online ready for operational activity. The CHPP has been fully assessed and a recommissioning project commenced to ensure it will be online and operational for the first scheduled coal wash.
Read the article online at: https://www.globalminingreview.com/mining/04072017/terracom-provides-mining-update/