Long lead orders as Australian Pacific Coal targets Dartbrook restart mid-2024

Australian Pacific Coal Limited (ASX: AQC) has placed orders for critical equipment and long lead items, including underground conveyor systems, as it works towards restarting the Dartbrook mine in Hunter Valley, NSW.

With the company targeting coal production mid this year, drawdowns have commenced from its $90m (US$60m) debt facility in January with Dartbrook coal’s sole marketing agent Vitol Asia Pte Ltd.

Materials for the refurbishment of the above ground coal handling and preparation plant (CHPP) and train load out have also been ordered and, as of 8 March, the Dartbrook JV which comprises AQC (80%, via subsidiaries) and Tetra Resources Pty Ltd (20%, via subsidiaries) has $29m (US$19m) in cash balance.

AQC interim chief executive Ayten Saridas says this is an exciting period for the company and the Dartbrook mine which is a high-quality asset that has been in care and maintenance since 2006.

“Since we announced the completion of the Dartbrook restart funding package in January, we have focused on moving the project forward on multiple fronts,” she said.

“With the funds now fully available for the development, orders have been placed for critical equipment and long lead items, and we have begun recruiting additional key personnel.

“We have embarked on an accelerated works program to keep the project on track for first coal in mid-2024, which will recover some of the time lost to finalise the funding package, and we aim to substantially enhance production and coal sales from day one.

“Our primary focus will be to bring forward certain ramp-up activities to allow us to recommence mining operations in a second panel much earlier than originally planned.

“We remain confident that this will translate into an increase in production volumes in the project overall.

“While thermal coal prices have improved, met coal prices remain at substantially higher levels.

“With that in mind, we are accelerating the work to determine whether Dartbrook can produce significant volumes of semi-soft coking coal which is currently trading at a significant premium to NEWC spec coal prices.”

AQC is working with its partners to optimise the mine plan and allow for an additional continuous miner to operate in a second panel earlier than originally planned.

Crews have been recruited for construction work and the first two production panels, with production equipment secured for the first panel and equipment for the second panel now on site.

AQC will also further examine the potential of Dartbrook mine to produce commercial quantities of semi-soft coking coal under the current mine plan.