AQC puts $120m cost on Dartbrook coal mine reopening
Australian Pacific Coal said the cost of re-opening the Dartbrook coal mine in the Hunter Valley would be between $100 million and $120 million.
The Brisbane company, known by its ASX ticker code of AQC, said the pre-production phase was likely to take up to nine months.
It was aiming to start with production of 1.5 million tonnes a year and ramping up to 6mtpa.
But first it has to get water out of the flooded parts of the mine and get a hold of mining infrastructure.
Its partner, M Resources was advancing its financing and said there were several potential financiers. Debt funding was expected to acquired before Christmas.
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AQC said savings of up to $180 million have been made by renting equipment.
“Operating costs for Dartbrook are expected to be in line with a conventional bord and pillar operation, where steady state production is expected to have a cost of $A85 to $A90 a tonne. This supports margin expansion as Dartbrook will produce Newcastle specification coal, which currtently trades at a $US180 a tonne premium to API,” AQC said.
