Dartbrook JV Draws Down Full $90M Senior Debt, Adds $14M More for Production
Australian Pacific Coal advances commissioning at Dartbrook with wash plant refurbishment underway and secures additional $14 million senior debt to support production ramp-up.
- Wash plant refurbishment completed; wet commissioning started in April
- Third continuous mining unit commissioned to enhance underground productivity
- Public exhibition period concluded for six-year extension of operating period to 2033
- Senior debt facility upsized by US$14 million plus A$5 million shareholder loan secured
- TRIFR at 24.7 with zero environmental incidents reported
Operational Progress at Dartbrook
Australian Pacific Coal Limited (ASX: AQC) has reported significant operational milestones in its March 2025 quarterly activities report, highlighting the ongoing ramp-up of its Dartbrook coal mine in the Hunter Valley, NSW. The company successfully executed a refurbishment program on its Coal Handling and Preparation Plant (CHPP), with wet commissioning commencing in early April. This refurbishment is a critical step toward resuming washed coal production, anticipated to begin in the June quarter.
Complementing this, the commissioning of a third continuous mining unit marks a strategic enhancement in underground mining capacity. These developments aim to improve productivity despite ongoing challenges in staffing critical production roles. Operational strategies such as equipment relocation and improved horizon control are expected to further boost underground efficiency.
Financial Maneuvers to Support Production Ramp-Up
Financially, the Dartbrook Joint Venture drew down the full US$90 million senior debt facility during the quarter, alongside an additional A$8.5 million from a subordinated facility. Post-quarter, the senior debt facility was upsized by an additional US$14 million through Vitol Asia Pte Ltd, the existing lender, and a new A$5 million unsecured shareholder loan was secured from major shareholder Trepang Service Pty Ltd. These capital injections are intended to provide working capital to support the production ramp-up phase.
At the group level, Australian Pacific Coal held $4.6 million in available cash at the end of March, with $0.6 million held at the Dartbrook Joint Venture level. The company’s executive chairman, John Robinson, emphasized the disciplined approach to safe and reliable operations and expressed optimism about washed coal sales commencing soon.
Regulatory and Safety Updates
The company completed a public exhibition period for its application to extend the current Development Approval (MOD8) by six years, through to December 2033. The process now moves to responding to submissions and regulatory assessment by the NSW Department of Planning, Housing, and Infrastructure. This extension is pivotal for the mine’s long-term operational planning.
Safety metrics showed a Total Recordable Injury Frequency Rate (TRIFR) of 24.7 as of 31 March 2025, with three lost time injuries reported in the previous quarter but no environmental incidents during the period. The operator is actively onboarding personnel and implementing skill transition programs to address workforce challenges.
Looking Ahead
With washed coal sales targeted for the June quarter and operational improvements underway, Australian Pacific Coal is positioning Dartbrook for a steady production ramp-up. The financial backing from Vitol and Trepang provides a buffer to manage working capital needs during this critical phase. However, the ultimate success hinges on operational execution and regulatory approvals.
Bottom Line?
Dartbrook’s next quarter will be a litmus test for Australian Pacific Coal’s production and financial momentum amid regulatory scrutiny.
Questions in the middle?
- Will washed coal sales commence on schedule in the June quarter?
- How will the MOD8 extension application impact long-term project viability?
- Can operational productivity gains offset workforce challenges in underground mining?
