The company is planning to restart mining at Isaac Plains – which lies east of Moranbah – in the first half of 2016 at initial production rate of 1.1 million tonnes per annum.
The Isaac Plains project has open cut JORC resources of 5 million tonnes and a total resource of 30Mt.
The acquisition would include all assets held by the joint venture participants in relation to the mine including a dragline, coal handling and processing plant (CHPP), rail loop, loading facility and mine infrastructure area.
Underground operations at Isaac Plains would also be evaluated by Stanmore with the potential to run both Isaac Plains and the nearby recently-acquired Watonga project site simultaneously, given the capacity in the CHPP and rail infrastructure, according to the company.
Stanmore would assume all outstanding contracts including transport infrastructure access arrangements as part of the deal which also frees the vendors from material ongoing liabilities.
It will receive a series of compensation payments within the first 12 months of completion.
These payments are repayable to the vendors via a production-based royalty to be applied based on coal price thresholds, Stanmore said in a statement to the market.
Open-cut coal mining within Isaac Plains mining lease (70342) started in 2006 with production continuing until late 2014 when the mine was placed on care and maintenance. At peak production the mine produced around 2.8Mtpa of export coal, comprising coking, PCI and thermal coal types.
The coal was sold to a number of the major steel makers within Asia including Japan, South Korea and Taiwan.
“The area around Isaac Plains is a prime coking coal region within the Bowen Basin, with a number of nearby operating mines and development assets owned by significant players,” Stanmore said.
“The region is well serviced by the coal ports of Dalrymple Bay Coal Terminal (DBCT) and the Hay Point Coal Terminal (BHP Mitsubishi Coal Alliance) near Mackay. Isaac Plains has its own dedicated coal handling, preparation and processing facilities and rail access infrastructure, with product coal transported 172km by rail to DBCT.”