PERTH (miningweekly.com) – Diversified major Glencore has started the sales process for its Tahmoor underground coal mine, in New South Wales, after announcing in August last year that it would not continue mining beyond 2018, on the basis that ongoing operations would not meet the company’s internal investment criteria.
Glencore on Tuesday noted, however, that given the recent increases in coking coal prices, the company had restarted development of additional longwall blocks in the North West area of the mine, and had also requested updated assessment requirements for the Tahmoor South project.
“We believe the asset has a number of development options for the future and presents a potential buyer with the opportunity to establish or increase a strategic position in the Australian coking coal industry,” Glencore said in a statement.
The Tahmoor mine, which employs some 340 staff and produced 1.8-million tonnes of saleable coking coal in 2016, includes 57-million tonnes of reserves and 650-million tonnes of resource. Glencore noted that the project was also equipped with efficient logistics and transport systems and established, long-term relationships with customers across Asia.
Operations at the mine will continue unabated until a sales agreement is reached.