Stanmore Resources Limited
Stanmore Resources Limited
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Significant weather disruptions that also impacted rail infrastructure and haulage lowered Australian miner Stanmore Resources March qtr (Q1FY2023) run of mine coal production to 4.1Mt, down from 4.4Mt in the previous period. Stanmore’s total coal sales were also reduced to 2.8Mt (Q4FY2022: 3.5Mt).
CEO Marcelo Matos says it holds healthy levels of product and ROM stockpiles that should support a strong Q2 performance.
The acquisition of the remaining 20% stake in the former BHP Mitsui JV’s South Walker Creek and Poitrel mines has seen Australian miner Stanmore Resources lift its Sept qtr (Q1FY23) ROM coal production to 5.1Mt, from 2.9Mt in the previous period.
Stanmore acquired the BHP stake in the BMC JV in late 2021, and subsequently renamed it Stanmore SMC.
CEO Marcelo Matos says Q1 production remained strong despite unseasonal wet weather in July and early Sept. Total managed production coal sales were 3Mt (Q4FY22: 2.4Mt).
Australian miner Stanmore Resources has awarded a five-year drilling contract worth about $A65M to Action Drill & Blast at its South Walker Creek opencut metallurgical coal mine in the Bowen Basin, Qld.
Stanmore became operator of the long-life mine via its acquisition of BHP’s 80% JV interest in May 2022. The mine produced 4.9Mt high-quality low volatile PCI coal in FY21.
Local metallurgical coal producer Stanmore Resources will move to 100% ownership of the former BHP Mitsui JV in Australia’s Bowen Basin after reaching agreement to acquire the 20% stake of Japanese trader Mitsui.
The US$380M deal follows Stanmore’s $1.35B acquisition of BHP’s 80% JV interest in Nov 2021 in the world-class South Walker Creek and Poitrel mines, with combined 10Mtpa output, and the undeveloped Wards Well project.
Australian coal miner Stanmore Resources is predicting tight supply and strong market fundamentals for metallurgical coal to continue despite recent short-term adjustments after lifting its June half-year (H1FY2022) revenue to $US1.096B, from $71.8M a year earlier.
Underlying EBITDA was $434.7M (H1FY2021: $6.6M loss) and after-tax profit $232.7M ($12M loss).
The acquisition of the South Walker Creek and Poitrel mines helped lift H1 total coal sales to 2.9Mt (0.8Mt) at $377/t ($88/t) against FOB cash cost of $87.3/t ($100/t).
BHP has set a deadline of mid-2030 to cease mining at Australia’s largest openpit thermal coal mine after a two-year process seeking a trade sale failed to come up with a viable offer.
The move into the low-strip Isaac Downs mining area has enabled Australian miner Stanmore Resources to post record ROM coal production of 1.02Mt for the March qtr (Q1FY2022), up from 0.7Mt in the previous period.
Road haulage issues, including the transition to a new contractor and new haulroad on top of adverse weather, reduced saleable coal production to 565,000t (Q 4FY2021: 610,000t) and coal sales to 538,000t (632,000t).
Australian coal miner Stanmore Resources has turned to international contractor EPSA for the award of a 5-year, $A564M opencut mining services contract for its 100%-owned Isaac Downs project in the Bowen Basin, Qld.
The appointment of the Spanish contractor’s Australian subsidiary EPSA Pacific comes after Stanmore terminated its existing mining services agreement with Golding Contractors, which has been active at the area’s mines since 2016.
Australian coal producer Stanmore Resources has set itself to become a leading global metallurgical coal producer with agreement on the up-to $US1.35B acquisition of BHP’s 80% stake in the BHP Mitsui Coal JV in Queensland.
For BHP, the sale of its BMC interest in the world-class South Walker Creek and Poitrel mines with combined 10Mtpa output and the undeveloped Wards Well project is part of a strategy to focus on higher-quality coking coal operations.
The next step in the revival of the Millennium and Mavis Downs metallurgical coal mine in the Bowen Basin of Queensland, Australia is set in motion with the award of a $A425M, five-year underground mining services contract to mining and services company PIMS Group.
The contract announced by 50% owner Stanmore Resources covers bord and pillar mining at over 1.2Mtpa ROM from July 2022, commencing at Mavis Downs and transitioning to Millennium.