The historic Blair Athol Coal Mine in Central Queensland will re-open by the end of June this year.

Operations at the Blair Athol Coal mine have been transferred from Rio Tinto to Orion Mining Pty Limited - a wholly owned subsidiary of TerraCom.

The mining lease acquisition has been fully approved by the Queensland Department of Natural Resources and Mines and includes related licenses, land, site infrastructure, active contracts and all mining plant and equipment, including a dragline, to deliver TerraCom’s forecast production schedule and the progressive rehabilitation of the site.

Recommencing mining at Blair Athol - the state's first open cut coal mine - will generate 150 direct jobs and a further 450 indirect jobs in the region.

Orion Mining chairman and TerraCom Board Member Mr Jim Soorley said reopening the mine would create hundreds of jobs in the region and the strong coal prices would provide significant taxes and royalties to the Queensland Government.

“TerraCom is committed to providing employment opportunities for local workers in the region, rather than operating a fly-in-fly-out workforce and the company will also relocate its head office to modern facilities in Clermont.

“The completion of transfer of ownership of Blair Athol Mine is not only great news for TerraCom but is great news for the community of Clermont and the state of Queensland, with up to $80 million in taxes and royalties to flow from the re-opened mine operation and with the recommencement of rehabilitation activities," he said.

The mine had been mothballed since 2012 but the equipment on site has been maintained to a high standard and is ready to start operations. When production recommences at the Blair Athol mine it is expected to export $1.2 billion worth of coal over the next seven years - based on current prices.

$79.6 million will be transferred to a government-controlled trust fund for rehabilitation costs as part of TerraCom's $93.1 million financial contribution to progressively rehabilitate the mine.

TerraCom has built and commissioned a $150 million coking coal mine in the Gobi desert Mongolia, which employs 350 people. It recently signed a 5.5 year deal to sell over $1 billion worth of coal from that mine into China.