A Queensland coal mining company has bought the recently mothballed Isaac Plains mine in the Bowen Basin for just $1.
Stanmore Coal plans to re-start production at Isaac Plains in the first half of 2016, more than a year after about 300 jobs were lost when production was halted.
At current coal prices, the mine could operate for another three years, the company said.
Stanmore has agreed to pay $1 for control of the mine from Brazilian mining giant Vale and Japanese firm Sumitomo, which established the mine in 2006 before placing it under care and maintenance in September 2014.
It will also be compensated by Vale and Sumitomo for some of the contractual obligations it will inherit, and repay that compensation over time through royalties.
"It's an exciting time for the Stanmore team as we prepare to join the ranks of Australia's coking coal producers in supplying high quality coal to the large steel mills of Asia," managing director Nick Jorss said.
Stanmore plans to return Isaac Plains to production of 1.1 million tonnes per annum, less than half the 2.8 million tonnes produced at its peak.
Stanmore bought the Wotonga coal deposit adjacent to the Isaac Plains mine in early July.
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