Coal production has started at the Blair Athol thermal coal mine near Clermont, says new owner TerraCom Limited.

This had occurred on schedule and the operation would rapidly ramp up as planned to about 2 million tonnes per annum annualised run rate in the last quarter of 2017, the  company said in an ASX announcement today.

Initial coal sales will meet product specification as a bypass crushed thermal product.

The new owners are continuing a dragline overhaul, with the dragline expected to go back into operation before the end of the month.

The site’s CHPP is being recommissioned and is expected to come online in October.