https://www.engineeringnews.co.za

Stanmore readies Millennium and Mavis Down for restart

14th July 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – The joint venture (JV) between coal miner Stanmore Coal and M Resources, has completed the acquisition of the Millennium and Mavis Downs coal mines, in Queensland, from the Australian arm of energy major Peabody Energy.

The JV vehicle, known as MetRes, in April this year struck an agreement with Peabody to acquire the two mines for an upfront cash consideration of A$1.25-million and a royalty agreement capped at A$1.25-million.

The JV will assume and undertake rehabilitation obligations, estimated at around A$25.7-million, with Peabody reimbursing A$12.5-million of incurred rehabilitation costs over a two-year period.

Stanmore said this week that auger mining is scheduled to start in August this year, with rail and port logistics contracts already executed, providing a clear path for the JV to take advantage of favourable market conditions.

Queensland Resources Minister Scott Stewart said the sale agreement between MetRes and Peabody Energy Australia was great news for Queensland and would help with the state’s Covid-19 economic recovery.

“This venture will create more than 150 jobs through investment in underground expansions and completion of rehabilitation obligations.

“With a predicted mine life of 22 years, including rehabilitation, these are lasting jobs and will create long-term royalties that will benefit all Queenslanders. This investment is a strong sign of the growing confidence in our resources sector as Queensland continues its road to economic recovery.”

The Millennium and Mavis Downs mines will feature a mix of opencut, high wall and underground mining methods used for the extraction of high-quality metallurgical coal.

The project will have a total production of 13.9-million tonnes of metallurgical coal during its lifespan.

The Millennium mine is adjacent to Stanmore’s own Isaac Downs mine.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Sika South Africa
Sika South Africa

Sika South Africa is a trusted partner for the nation’s infrastructure, commercial, residential, and industrial sectors.

VISIT SHOWROOM 
Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.049 0.685s - 140pq - 2rq
Subscribe Now