A newly established supply chain has been successfully commissioned, which includes the full commissioning of a coal washery in Ceke and integrating a new set of trucking providers.

During the June quarter, coal was successfully delivered to JISCO and Haohai steel mills in China.

“The demand for BNU hard coking coal in the region has continued to remain strong with all tonnes from the new supply chain sold to regional customers, reinforcing the favourable characteristics of the company’s coal for end users,” TerraCom said.

“The Terra Energy mining personnel and assets have been retained during this period to enable rapid startup of mining operations once the supply chain is cleared. Despite retaining the ability to rapidly return to work, significant cash savings have been realised through prudent management of expenses throughout the quarter.”

Pit 2 at BNU remains ready for a return to mining at 125,000 tonnes per month.

“The focus at BNU during this slowdown period has been to remove costs out of the business and reduce the mine site stockpile to target levels, which has been achieved while maintaining the site in a state of readiness,” the company said.

“The operation is fully prepared for an immediate recommencement.”