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Futures dropped for a fourth day in Singapore, to trade about 3% lower for the week.
Australian Pacific Coal (ASX: AQC) announced on Thursday that the Dartbrook joint venture has produced coal to surface at the mine in New South Wales — its first in more than 17 years.
In partnership with Tetra Resources, the JV last year entered into a sales and marketing agreement with Vitol, a major global commodities trader, for all production from the site.
The mine, situated in the Hunter Valley region, was placed on care and maintenance in late 2006 because of operational difficulties and lower coal prices.
Dartbrook was owned by Anglo American until its 83.33% interest was sold to Australian Pacific for A$50 million ($36 million) in 2015.
Coal was successfully produced to surface on Wednesday following the completion and testing of the newly installed 4 km conveyor system, the company said, adding that it is designed to transport coal produced from the Kayuga seam to surface, via the Hunter Tunnel.
Miners have cut quantities of coal since taking the bulk sample for lab testing in mid-July 2024. With the conveyor operational, the conveyor and mining systems will now enter a commissioning period before commercial production commences.
“Commissioning is underway and the team on the ground is working hard to bring the mine safely into commercial production in the coming weeks.”
Australian Pacific CEO Ayten Saridas
Initially, Dartbrook will only produce unwashed thermal coal for sale to domestic or export customers, Australian Pacific said. Once refurbishment of the coal handling and preparation plant is completed in early 2025, the wet plant will be fully operational allowing coal to be graded for export markets.
“This is another major milestone for Dartbrook. For the first time since the mine entered care and maintenance in 2006, Dartbrook is once again producing high quality coal,” Australian Pacific CEO Ayten Saridas, said in a news release.
“Commissioning is underway and the team on the ground is working hard to bring the mine safely into commercial production in the coming weeks,” Saridas said.
“In just 18 months, we have simplified the joint venture, secured $60 million in restart capex, finalized land and water access agreements, dewatered and refurbished the Hunter Tunnel, sourced and commissioned mining equipment, and installed a brand new 4 km conveyor system,” she continued.
Saridas added that there is still work to be done to achieve commercial production, and the company remains focused on its goal of making Dartbrook a world-class underground mine and cementing its place as the Hunter Valley’s newest coal producer.
Australia Pacific’s shares rose over 5% in Thursday trading. The company has an approximate A$96 million ($64 million) market capitalization.
