Excavator and dragline power Stanmore's production

HIGH utilisation rates from Stanmore Coal's dragline and excavator at its Isaac Plains complex in Queensland helped the company increase run-of-mine production by 41% in the September quarter to 924,000 tonnes.

 Stanmore Isaac Downs bulk sampling pit in Queensland.

Stanmore Isaac Downs bulk sampling pit in Queensland.

The company anticipates coal mining production and corresponding sales to continue to strengthen in the second half of 2021 relative to H1, expecting the lower end of the 2.2 million tonne to 2.4Mt range for full-year 2021.

"Production output increased in the third quarter as the Isaac Downs bulk sample operation ramped up operations," Stanmore said.

"In particular, the EX3600 excavator operating at the Isaac Downs site recorded industry best practice productivity rates. During the period the dragline operation at Isaac Plains also operated at close to peak."

September quarter coal sales of 723,000t reflected strong mine and coal preparation plant performance, which produced 653,000t of saleable coal made up of approximately 96% coking and 4% thermal coal.

The rate achieved for the quarter matches the current system capacity levels of 2.4 Mt per annum for saleable production.

"Further opportunities to increase volumes are being investigated to capture the benefits of improved coal market conditions, strong demand, and improved coal prices for seaborne coking coal," Stanmore said.

During the September quarter, Stanmore received mining lease approval for its Isaac Downs Mine.

"This is a significant milestone for Stanmore Resources and all environmental and mining approvals are now in place for the new mining operation," the company said.

"Initial capital expenditure of $47 million was also announced for the development of the mine, and $40 million worth of contracts have been executed with Queensland companies for the construction of the Peak Downs Highway underpass bridge and highway re-alignment, the haul roads linking Isaac Downs with the existing Isaac Plains mine, and the 6km long flood protection levee.

"The board has also authorised a further $9 million worth of expenditure including additional water management infrastructure, further powerline works and establishment of sub-stations, and the construction of explosive reload facility and magazine.

"Construction activity during the quarter is now well established with work on the flood protection levee, haul road and the Peak Downs highway underpass construction all progressing while the initial bulk sample mining operation is completed, and the pit is expanded into the newly approved mining areas."

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