Qld coalmine to be bought for $1

Another coalmine in Queensland's Bowen Basin is set to be bought for $1.

TerraCom Limited has reached an agreement to purchase the Rio Tinto managed Blair Athol coking coal mine, which closed in 2012, for the nominal fee and will receive $80 million to meet rehabilitation requirements.

The planned acquisition comes just a year after Queensland company Stanmore Coal purchased the nearby Isaac Plains open-cut coalmine for $1.

TerraCom, a subsidiary of Orion Mining, says the reopening of the Blair Athol mine will generate more than 100 jobs and deliver significant royalties.

The company plans to resume operations later this year and expects to mine two million tonnes of coal annually.

The proposal includes $80 million from the previous owner to meet the mine's rehabilitation liability as determined by the state government.

It also includes the mining lease, licences, lands contracts and all mining plant and equipment, including a dragline.

A Rio Tinto spokesman said the deal was subject to the execution of a binding sale, purchase agreement and approvals.