Rio Tinto To Sell Blair Athol Coal Mine To Linc Energy

Jan 31, 2015 by

Linc Energy coal president Michael Mapp said the company would re-open the mine once the tenure had been transferred, creating over 100 jobs at the site.
Both firms have signed a sale and purchase agreement for the mine, which is located 24km north-west of the town of Clermont in the Bowen basin region of central Queensland.
Rio Tinto and its partners closed the mine silica sand grinding mill in November 2012 after 30 years of operations.
Rio Tinto has agreed to sell its interest in the Blair Athol coal mine in Australia to New Emerald Coal (NEC), a subsidiary of Linc Energy.
Image: Rio Tinto and its partners closed the Blair Athol mine in November 2012. Photo: Courtesy of Anthony Moller.
The transaction is anticipated to be complete within six months and Linc Energy said the acquisition would deliver production capacity to NEC and ‘add value as the company expands its coal asset portfolio’.
The deal, which does not include upfront costs, features the mining tenure, on-site assets and infrastructure.
As per the deal, Rio Tinto agreed to make a contribution to NEC towards iron ore beneficiation plant cost the current expected statutory site rehabilitation obligations from 2016 to 2019.
Mapp added that the Blair Athol asset further enhanced the value of the company, whose other assets include the Teresa Coal project in the Bowen basin.
NEC is planning to re-open the mine with a view modification change ball mill to produce about three million tonnes of thermal coal per year.

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