The Tahmoor mine will not go under, owner GFG Alliance said, as the company has agreed to terms to restructure its debt after the collapse of financer Greensill Capital.
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Greensill's descent into administration had put the operations of both the Tahmoor mine and the Whyalla steelworks in peril.
A month ago Citibank, acting on behalf of Credit Suisse, was set to take GFG owner Sanjeev Gupta to court in an attempt to wind up two of his operations - OneSteel Manufacturing and Tahmoor Coal.
The uncertainty clouded what would have been welcome news for the company as the Independent Planning Commission approved the mine's expansion further under the town of Bargo.
Read more: Tahmoor mine faced potential liquidation
In a statement on Wednesday afternoon a spokesman for GFG said the future had been secured for Liberty Primary Metals Australia (LPMA).
"The new financing is sufficient to pay out its Greensill debt in full and to provide on-going working capital for the LPMA group, which includes the integrated mining and primary steel business at Whyalla and its coking coal mine at Tahmoor," the company said.
"The offer is subject to customary conditions precedent and documentation, a process which has commenced and is expected to complete within four weeks.
"GFG Alliance is in continuous discussions with multiple financiers on a competitive basis for various parts of its business and is committed to securing sustainable funding solutions to replace funding provided by Greensill."