RIO TINTO'S Blair Athol mine near Clermont is likely to sell to Orion Mining, a wholly owned subsidiary of TerraCom.
Terracom issued a press release this morning that said the acquisition price was AUD$1.
It also said TerraCom would receive AUD$80m from the vendor to meet Blair Athol Coal Mine's rehabilitation liability.
Although the mine ceased production in late 2012, the new company plans to bring it back to production by the fourth quarter of 2016.
This would create about 100 local jobs.
The final execution of a binding sale and purchase agreement requires approvals from the TerraCom Board, and each Rio Tinto managed Blair Athol Coal Joint Venture participant.
An application for the transfer of the Mining Lease for the consideration of the Minister for Natural Resources and Mines would then be submitted.
The acquisition would include the mining lease, licences, land, contracts and all mining plant & equipment including a dragline to deliver the forecast production schedule and the progressive rehabilitation.
All site infrastructure including offices, workshops and stores associated with the mine were also included in the transaction.
The Blair Athol Coal Mine ceased production under its current management in late 2012.
TerraCom planned to begin more than 50 hectares of site rehabilitation while bringing the mine back into production.
Production is being scheduled around a rate of 2Mtpa of coal.
A Rio Tinto spokesman confirmed the Blair Athol Coal Joint Venture was is in discussions with "a potential purchaser" regarding its interests in the Blair Athol mine.
But he said these discussions may or may not result in an agreed transaction and were subject to the execution of a binding sale and purchase agreement and approvals from the Joint Venture participants and the Queensland Government.
He noted a previous Sale and Purchase Agreement with New Emerald Coal Ltd was terminated after they were unable to meet conditions of the agreement.
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