Jul 27, 2017

Good news on lease for beleaguered miner

Good news on lease for beleaguered miner Baralaba Coal's rail load-out facility, east of Moura.

Baralaba Coal Company has received a mining lease approval that will allow it to haul coal from Baralaba North mine on its preferred access route.

The company’s administrators said this week they understood the operation now had all the necessary approvals to restart the metallurgical coal mine, located 5km north of the Baralaba township in central Queensland.

McGrathNicol partners were appointed as administrators for Baralaba Coal on July 12 and said they were undertaking an urgent assessment of the company.

“The objective of the administrators is to work closely with management, employees, suppliers and customers to quickly stabilise operations and to determine the appropriate strategy for the business,” McGrathNicol said in an announcement at the time.

The company had been targeting a resumption of coal production in the third or fourth quarter of this calendar year, with an expected production of up to 200,000 tonnes of saleable product in 2017 and up to 2.2 million tonnes in 2018.

In its March quarterly report, Baralaba Coal (formerly Cockatoo Coal) stated it had spent $9.9 million on roadworks associated with restarting operations at Baralaba North .

An additional $25.4 million was required to complete the first phase of roadworks to enable the operation to haul more than 1Mtpa on a 60km route to the company’s new load-out facility at Moura.

The appointment of administrators follows a share entitlement offer which fell well short of raising the $77 million required to restart the Baralaba North mine and meet ongoing working capital requirements.