A long-term Japanese trading partner has signed up for Blair Athol coal shipments over the next year, guaranteeing sales for about half the mine’s expected output in that time.

The deal covers the delivery of up to 1.25 million tonnes over 13 cargoes from the Central Queensland coal operation during the period August 2022 to August 2023.

Mine owner Terracom said the Blair Athol operation was on track to achieve coal sales of 2.3 million tonnes for the financial year ending June 30, 2022, and it expects a similar figure next year.

“The finalisation of the offtake agreement has cemented the upcoming coal sales profile for the Blair Athol operation and represents up to 50 per cent of the annualised coal sales for the operation,” executive chairman Craig Ransley said.

“We look forward to being able to deliver another solid performance at BA, with a forecast annual run rate of 2.2 million tonnes per annum for the financial year ending 30 June 2023.

“The export thermal coal market remains strong and the full year operating EBITDA attributable to TerraCom for the year ending 30 June 2022 is still forecast to be approximately $420 million.

“As previously announced, the board is forecasting to declare a dividend for the period ending 30 June 2022 to be paid during September 2022.”

In addition to Blair Athol, TerraCom holds a portfolio of coal assets including producing mines in South Africa as a result of its acquisition of Universal Coal in 2020.

Blair Athol output is fully sold until October 2022, with up to 450,000 tonnes remaining unsold for the further eight months to June 2023. Depending on market conditions, this is targeted to be sold in the spot market.