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Dartbrook coal mine receives funding for restart

Whitehaven, dividend, dartbrook, coal, coal

Australian Pacific Coal (AQC) has received a non-binding letter of intent for $75 million in debt funding to restart the Dartbrook coal mine in NSW. 

AQC requires $120 million in working capital to enable mining operations to recommence at the site.

“The receipt of a non-binding letter of intent for up to $75 million of debt funding from a highly credible global party in this tough capital market environment is a clear signal that the Dartbrook project presents an attractive and compelling investment for lenders and traders alike,” AQC interim chief executive officer Ayten Saridas said.

“Whilst we have had to rely on our own balance sheet to fund the restart activities to date, it has enabled us to significantly de-risk the project and reflects positively on our progress.

“We are on track to commence mining operations in the fourth quarter of 2023 and anticipate first coal sales and shipments in quarter one, 2024,” Saridas said.

Dartbrook has been shuttered since 2006, but AQC and its joint venture (JV) partners have been working to recommission the mine.

The Dartbrook JV was formed in September 2022 after months of competitive bidding for the mine.

The mine was sought after as it was one of the few sanctioned and undeveloped coal assets in Australia at a time when prices for the commodity had been driven to record highs.

According to AQC, a review of the mine plan also resulted in superior outcomes for Dartbrook, including the potential to enhance coal quality.

After receiving multiple bids from former Australian coal baron Nathan Tinkler, AQC entered into a binding term sheet with its largest shareholder, Trepang Services, as well as M Resources and Tetra Resources.

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