Mining will commence at a target rate of 1.1 million tonnes per annum of product coal, selling a high proportion of metallurgical coal with a thermal coal by product.
In December 2015 Stanmore appointed Golding Contractors as the head contractor at Isaac Plains with a scope of services including overburden removal, coal mining and operation of the coal processing plant.
The majority of recommissioning works was undertaken in November and December 2015 with the dragline overhaul completed in January under budget. Minor works are nearing completion at the coal processing plant.
Optimised mine plan and low cost mining approach result in a reduction of FOB unit costs by around 35% (compared to prior operations), placing the mine in the second quartile of a margin-adjusted global metallurgical coal cost curve.
Stanmore’s nearby Isaac Plains East will benefit from operational and capital synergies from acquired assets, including the Bucyrus 1370W dragline, coal handling facility, train load out and rail spur facilities, office facilities and workshops.
In February NRW Holdings’ subsidiary, Action Drill & Blast, reached in principle agreement with Golding Contractors for the provision of drill and blast services at Isaac Plains coal mines.
The proposed contract will have a 36 month term and has an estimated value of approximately $40 million.
Production drilling started in January at Isaac Plains coking coal mine in Queensland with operational handover to contractor Golding started in February.
