Low strip ratios a boon for Stanmore

STANMORE Coal plans to exploit the low strip ratios of its Isaac Plains East coal mine in Queensland which Peabody Energy was forced to unload last year as it sought to shore up its balance sheet.
Low strip ratios a boon for Stanmore Low strip ratios a boon for Stanmore Low strip ratios a boon for Stanmore Low strip ratios a boon for Stanmore Low strip ratios a boon for Stanmore

Stanmore Coal's Isaac Plains open cut coal mine in Queensland.

Lou Caruana

The mine’s starting strip ratio is less than 6:1, which is lower than its adjacent Isaac Plains mine, the company said in a recent presentation.

“There are significant synergies with Isaac Plains, with minimal capital requirements,” it said.

“There is a 3km haul back to Isaac Plains processing and transport infrastructure.”

Stanmore bought Isaac Plains from Peabody in July 2015 with an upfront payment of $2 million and contingent payments of $2 million upon grant of a mining lease and $3 million payable as a $1 royalty per tonne sold.

The main Isaac Plains mine, which Stanmore famously acquired from Vale and Sumitomo for $1, will be re-optimised at 1.5 million tonnes per annum ROM to maximise the proportion of the low cost dragline.

There will be open cut mining of lower strip ratio northern pits only, with Golding being the main contractor.

“Contractors’ rates are significantly lower than recent boom period,” Stanmore said.

“There will be a reduction in take-or-pay contracts from 2.8Mtpa to 1.1Mtpa match optimized production level.”

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