After 18 years on care and maintenance, the Dartbrook coal mine in the Hunter Valley may finally open its doors again.
Australian Pacific Coal and Tetra Resources have been working to recommission Dartbrook since September 2022, after it was placed on care and maintenance in 2006.
This week, the two companies finalised a three year $US60 million ($90 million) debt facility with Vitol Asia to cover the restart expenditure at Dartbrook through to first coal.
“This is a landmark event for Australian Pacific Coal, our shareholders, and the Dartbrook mine,” Australian Pacific Coal interim chief executive officer Ayten Saridas said.
“The $US60 million restart funding package we have agreed with Vitol opens the door for Dartbrook to restart production after 18 years in care and maintenance.
“Our ability to secure debt funding for Dartbrook during a period of high inflation and global tension is testament to the quality of the project, the vision and work ethic of the team of people bringing it back to market, and the commitment of our shareholders.”
The debt facility will be structured as a loan notes issuance agreement and will involve a three-year facility with repayments commencing after an initial grace period to allow for mine production startup.
“From the moment we engaged with Vitol, they have seen the potential value we can create at Dartbrook,” Saridas said.
“They have been thoroughly professional during this process and we are looking forward to working closely with them in coming years.
“Vitol will play a key strategic role in the development of the project following their appointment as sole marketing agent for Dartbrook coal. Dartbrook product is very high quality and we anticipate strong interest from export markets.”
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