Stanmore is targeting mining recommencement at Isaac Plains within the first half of calendar 2016 and an initial production rate of 1.1 million tonnes per annum.
On 30 July 2015, the Stanmore announced it would acquire 100% of Isaac Plains from Vale and Sumitomo Corporation at an acquisition price of $1, with Stanmore assuming all outstanding contracts including transport infrastructure access arrangements.
In exchange for releasing the vendors from material ongoing liabilities, Stanmore 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. Completion of the transaction is anticipated to occur in November 2015, according to the company.
On September 4, Stanmore also completed the acquisition of the nearby Isaac Plains East project.
The shallow, coking coal deposit is well located near the existing infrastructure of Isaac Plains which is anticipated to deliver operational and capital synergies for both projects, according to Stanmore.
The majority of the consideration is payable only when the company achieves certain development milestones, it said.