Stanmore Coal Ltd. announced through a 50/50 joint venture with an M. Resources affiliated entity, MetRes Pty Ltd., it has executed agreements with Peabody Energy Australia to acquire a 100% of the assets, rights and obligations associated with the Millennium and Mavis Downs mines.
Restarting the mines represents a low capital and quick-to-market investment opportunity in a high-quality metallurgical coal asset, supported by access to existing critical infrastructure. Mining is planned to recommence in July, with planned production ramping up to 1 million metric tons per year with coal washing undertaken at the Red Mountain infrastructure coal handling and preparation plant via a fully executed toll washing and train loading agreement. The restart of the mines is expected to create 150-200 jobs.
The acquisition provides Stanmore with synergies identified between its existing assets and the Millennium assets, including access to available infrastructure, product blending, and other operational and project related savings.
The mine is located near Moranbah, Queensland, adjacent to Stanmore’s Isaac Downs project.
Historically, Millennium has produced benchmark level HCC64 hard coking coals and PCI coals, complementary products to the existing Stanmore mines.
Stanmore will provide the joint venture with a total finance facility of up to A$30 million, including a working capital debt facility of A$15 million to the joint venture to cover initial working capital requirements, and an additional A$15 million debt facility to support rehabilitation surety obligations if required.