Company secures $17m to buy, reopen CQ coal mine

BOUNTY Mining Limited has raised $17 million to purchase Cook Colliery mine, with plans to resume operations by early next year.

Bounty will settle the acquisitions, which also includes the Minyango Coal Project, for $31.5 million, with $6.7 million paid on completion and the balance deferred and paid over 18 months.

The purchase includes all of the assets associated with Cook Colliery, including the rail loop, mining lease, and coal marketing agreement for $10 million.

The site aims to reopen the mine as a more "flexible and efficient" bord and pillar style operation, opposed to the longwall the former Chinese owners had.

It hopes to progressively increase production to 1.8 million tonnes over 12 months.

"Bounty is pleased with the elevated interest in Bounty and the Cook Colliery premium hard coking coal mine off the back of a significantly improved Hard Coking Coal price," Bounty executive chairman Gary Cochrane said.

The sale is expected to settle by November 25.

The formerly Caledon Coal-owned mine has been in care and maintenance since a flooding event in March.

In May Caledon Coal was placed in voluntary administration, which led to the redundancies of more than 100 Central Queensland workers.