Stanmore readies Millennium and Mavis Down for restart
PERTH (miningweekly.com) – The joint venture (JV) between coal miner Stanmore Coal and M Resources, has completed the acquisition of the Millennium and Mavis Downs coal mines, in Queensland, from the Australian arm of energy major Peabody Energy.
The JV vehicle, known as MetRes, in April this year struck an agreement with Peabody to acquire the two mines for an upfront cash consideration of A$1.25-million and a royalty agreement capped at A$1.25-million.
The JV will assume and undertake rehabilitation obligations, estimated at around A$25.7-million, with Peabody reimbursing A$12.5-million of incurred rehabilitation costs over a two-year period.
Stanmore said this week that auger mining is scheduled to start in August this year, with rail and port logistics contracts already executed, providing a clear path for the JV to take advantage of favourable market conditions.
Queensland Resources Minister Scott Stewart said the sale agreement between MetRes and Peabody Energy Australia was great news for Queensland and would help with the state’s Covid-19 economic recovery.
“This venture will create more than 150 jobs through investment in underground expansions and completion of rehabilitation obligations.
“With a predicted mine life of 22 years, including rehabilitation, these are lasting jobs and will create long-term royalties that will benefit all Queenslanders. This investment is a strong sign of the growing confidence in our resources sector as Queensland continues its road to economic recovery.”
The Millennium and Mavis Downs mines will feature a mix of opencut, high wall and underground mining methods used for the extraction of high-quality metallurgical coal.
The project will have a total production of 13.9-million tonnes of metallurgical coal during its lifespan.
The Millennium mine is adjacent to Stanmore’s own Isaac Downs mine.
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