Australian Pacific Coal said on Monday that it has secured a supply contract with a major coal purchaser and is on schedule to reopen a thermal coal mining in the state of New South Wales in the final qtr of the year.
The mining company is getting ready to restart its operations and generate 3 million tonnes of coal annually from its Hunter Valley mine. Which has been shutter since 2006. It had previously stated in March that it planned to resume in the 2nd half of 2023.
Australian Pacific Coal stated in a notification to the stock exchange that “The Dartbrook Joint Venture is presently completing financing solutions to meet future restarting capex & working capital needs.”
After the battle in Ukraine worsened the shortage of supplies brought on by an increasing reluctance from the environment aware investors to fund fresh fossil fuel projects, rising coal prices previously year have led to some fresh coal mines ramping up.
According to the statement, talks with a foreign third party with substantial experience in global coal marketing are currently in the final stages of paperwork and will be linked to a fresh coal advertising & supplies contract.
Once completed, this contract and the related financing will significantly reduce project risk and open up funding options.
Australia Pacific Coal announced that as part of its restructuring. It would increase both its direct working stake and net economic interest in the operation from 50 percent to 80 percent and 50 percent to 70 percent, respectively.