Queensland-based Golding Contractors has been awarded a 3-year mining services and coal preparation contract by Stanmore Coal for the restart of Isaac Plains Coal Mine located in the Bowen Basin of Northern Queensland.
Stanmore Managing Director Nick Jorss said Golding’s appointment as contractor will see the company provide waste removal, coal mining and coal processing operations at the mine which Stanmore acquired from Vale and Sumitomo Corporation earlier this year.
He said the company was on track to commence production in the first half on 2016 and to produce at least 1.1 million tonnes per annum over the next three years.
“Challenging commodity markets have presented an exceptional opportunity for Stanmore and in early 2016 we will become an independent producer of high quality coking coal for export to the steel industry in the region,” Mr Jorss said in a statement.
“We are on track for Stanmore’s first coal shipment from Isaac in April 2016, benefiting shareholders and creating approximately 150 new jobs in the Moranbah region. Reopening the mine will also restart the flow of over $t million a year in royalties to the State of Queensland in addition to other State and Federal taxes.”
Stanmore Chairman Neville Sneddon said the acquisition of Isaac Plain and its existing infrastructure will provide the company with an exciting platform for future growth.
“The acquisition of Isaac Plains for a nominal sum gives us a fully equipped coking coal mine with three years of mine life at current prices. It comes with over $350m of plant and equipment including a dragline and wash plant with excess capacity. Combining this with our adjacent Isaac Plains East deposit has created a low cost, long term coking coal mine utilising the existing Isaac Plains infrastructure without the need for any material capital expenditure,” Mr Sneddon said.
“The current market conditions provide significant opportunities for Stanmore. We are well positioned to continue our growth into a substantial independent coking coal producer with high quality assets and a low cost approach at a cyclical low point in the market.”
