Australian Pacific Coal, the prospective owners of Dartbrook mine, are conducting preliminary on-site investigations at the underground mine to progress its re-opening.
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Dartbrook located near Aberdeen is currently owned by Anglo American who closed the mine in 2006 and it has since been in care and maintenance.
In January this year Anglo agreed to sell the mine to Australian Pacific Coal – a company whose major shareholder is Trepany Services owned by Nick Paspaley and John Robinson.
The Paspaley family also own 20,000 hectares of prime agricultural land in the Upper Hunter and Central West.
According to Australian Pacific Coal the completed sale contract should be finalised in the coming months.
In the meantime Anglo has allowed the company on-site to carry out various investigations regarding statutory regulations that must be met before the mine can re-open.
Australian Pacific Coal’s immediate aim is to re-start the underground mine which they describe in company announcements as being a tier 1 asset with an estimated coal resource of 1.2billion tonnes.
As to why they would invest in a coal mine at this time they say it is a ‘counter-cycle’ play arguing coal prices have been over sold and driven down excessively.
Dartbrook’s neighbour is the former Rio Tinto owned Mount Pleasant open cut.
Mach Energy purchased, the fully approved but non-operational, mine this year and there is speculation that the new owners of Dartbrook may look towards developing an open cut operation.
But before anything can happen at Dartbrook a series of statutory regulations have to be ticked-off.
The NSW Department of Planning say the completion of any transactions concerning mining operations in NSW require the NSW Government to consent to the transfer of the mining lease and exploration rights (Ministerial approval is required).
An operator cannot legally commence production before the Division of Energy and Resources (DRE) undertakes comprehensive assessments to ensure compliance with legislation.
As Dartbrook closed in 2006 and has since been in care and maintenance, should financial transactions for the purchase of Dartbrook be successfully completed and a new owner wish to resume operations, it must apply for and be successful in its application to the NSW Government for the transfer of the title.
It must then be assessed by DRE as being compliant with legislation and a range of regulatory measures.
The new owner must appoint an operator, have the required statutory positions including mining engineering, electrical and mechanical in place and be assessed by DRE as being compliant.
Before operations commence, a new Mining Operation Plan, a Rehabilitation Cost Estimate and Safety Management Systems (SMS) which covers Principal Mining Hazard Management Plans and Principal Control Plans will also need to be considered and approved by DRE.
This includes the requirement that Security (covering 100 per cent of assessed rehabilitation liabilities) must also be lodged with DRE before any operation will be approved.
It should be noted that depending on the scope of the proposed operation, an application to the Department of Planning and Environment for modification to the existing development consent may be required.