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Isaac Plains to ship coal in April

17th December 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Stanmore Coal was preparing to ship its first coal from the Isaac Plains mine, in Queensland, in April of next year.

The company on Thursday announced that it had awarded a mining service and coal preparation contract to Golding Contractors, which would now be responsible for waste removal, coal mining and coal processing.

Stanmore would remain responsible for providing certain principal supplied plant and certain services.

“Challenging commodity markets have presented an exceptional opportunity for Stanmore, and in early 2016 we will become an independent producer of high quality coking coal for export to the steel industry in the region,” said Stanmore MD Nick Jorss.

“We are on track for Stanmore’s first coal shipment from Isaac Plains in April 2016, benefiting shareholders and creating approximately 150 new jobs in the Moranbah region. Reopening the mine will also restart the flow of over A$7-million a year in royalties to the state of Queensland, in addition to other state and federal taxes.”

Stanmore acquired the Isaac Plains coal mine in July of this year, from project owners Vale and Sumitomo Corporation for $1.

The Isaac Plains mine was placed on care and maintenance late in 2014, owing to a major slump in coal prices.  At peak, the mine produced some 2.8-million tonnes of export coal, which was sold to a number of steelmakers in Asia.

Under the contract agreed with Golding, some 3.3-million tonnes of coal would be produced over a three-year period.

The contract also allowed Stanmore the flexibility to amend the mine plan to access the Isaac Plains East deposit within the contract term.

Jorss said on Thursday that the company was fully funded to start production with its existing cash reserves, significant vendor payments and a $42-million interest facility.

Edited by Creamer Media Reporter

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