Dartbrook Mine Draws Down US$21.75M as Production and Sales Ramp Up
Australian Pacific Coal has marked a significant milestone with the first commercial coal shipment from its Dartbrook mine, backed by a substantial financing boost and ongoing infrastructure upgrades.
- First commercial unwashed coal railed to domestic utility
- Production ramp-up with three continuous miners planned
- Wash plant refurbishment underway, targeting mid-2025 completion
- Senior debt facility upsized to US$90 million with Vitol support
- Formal application submitted for six-year mine operating extension
Dartbrook Mine Reawakens
Australian Pacific Coal Limited (ASX: AQC) has successfully transitioned from restart to production at its Dartbrook mine in the Hunter Valley, achieving its first commercial shipment of unwashed coal to a domestic utility in December 2024. This milestone marks the first coal sales since the mine was placed into care and maintenance in 2006, signaling a new chapter for the project and its stakeholders.
The company reported ongoing production ramp-up, with two continuous mining units operational by year-end and a third system delivered, poised for commissioning in the March quarter. This expansion is critical to meeting anticipated demand, as domestic utilities have shown strong interest in the raw coal product, with sales expected to accelerate ahead of the wash plant refurbishment.
Infrastructure and Operational Enhancements
Central to the project’s value proposition is the refurbishment of the coal handling and preparation plant (CHPP), which commenced during the quarter. Scheduled for completion in the first half of 2025, the upgraded wash plant will enable the production of high-quality, low-sulphur Newcastle specification coal, offering flexibility to market either washed or raw coal depending on pricing dynamics.
The Dartbrook Joint Venture (AQC 80%, Tetra Resources 20%) also secured a Rail and Port Access Agreement, enhancing logistics capabilities and supporting the Free-On-Rail sales model now in place. This infrastructure deal is expected to streamline coal delivery and improve market responsiveness.
Financial Strength and Strategic Funding
Financially, Australian Pacific Coal strengthened its position through a successful upsizing of its Senior Debt Facility from US$60 million to US$90 million, arranged with global commodity trader Vitol Asia Pte Ltd. This was complemented by a A$20 million Junior Debt Facility funded equally by Vitol and AQC, unlocking additional working capital to support the ramp-up phase and capital expenditure.
To underpin this debt structure, AQC completed a A$20 million equity raising via an institutional placement and accelerated non-renounceable entitlement offer, which received strong support from existing and new shareholders, including its largest shareholder Trepang Services Pty Ltd. At quarter-end, the company held A$15.5 million in cash reserves at the group level, with an additional A$3.2 million at the Dartbrook Joint Venture.
Regulatory and Safety Progress
On the regulatory front, AQC submitted a formal application for a six-year extension to its mining consent (MOD8), seeking to extend operations through to December 2033. This extension is a critical value driver, reflecting the project’s long-term resource base and operational potential beyond the current approvals.
Safety metrics remain a focus, with a Total Recordable Injury Frequency Rate (TRIFR) of 14.4 reported for the quarter and no environmental incidents recorded. The operator continues to recruit and train personnel to support expanded underground operations, despite regional labour market competition.
Leadership and Outlook
Executive Chairman John Robinson highlighted the significance of these achievements, emphasizing the strategic partnership with Vitol and the operational momentum gained. The company’s focus remains on safely ramping up production, completing the wash plant refurbishment, and securing the MOD8 permit extension to unlock full project value.
As the Dartbrook mine transitions from restart to steady-state production, Australian Pacific Coal is positioning itself to capture improved market opportunities in the domestic coal sector, leveraging infrastructure, financing, and regulatory progress to underpin its growth trajectory.
Bottom Line?
With production underway and financing secured, Australian Pacific Coal is set to redefine Dartbrook’s role in the Hunter Valley coal landscape.
Questions in the middle?
- How will the wash plant refurbishment impact coal quality and pricing in 2025?
- What are the key risks and timelines associated with the MOD8 operating period extension?
- Can Australian Pacific Coal sustain production ramp-up amid regional labour competition?