TerraCom Ltd. said Sept. 23 that subsidiary Orion Mining Pty Ltd. signed a binding sale and purchase agreement to acquire the Blair Athol coal mine in Queensland, Australia, from the Blair Athol coal joint venture, or BACJV.

Upon completion of the A$1 deal, TerraCom will receive A$80 million from BACJV to meet Blair Athol's rehabilitation liability.

TerraCom plans to cover 50 hectares to start its site rehabilitation while bringing the mine back into production.

The company aims to restart production at the mine in the fourth quarter, at a rate of about 2 million tonnes per annum of coal.