Stanmore prepping Millennium and Mavis Down for reboot

PERTH ( – 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 branch of the major of the Peabody Energy.

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

The joint venture will assume and undertake remediation obligations, estimated at approximately AU $ 25.7 million, with Peabody reimbursing AU $ 12.5 million of remediation costs incurred over a two-year period.

Stanmore said this week that auger mining is expected to begin in August this year, with rail and port logistics contracts already executed, providing a clear path for the joint venture to take advantage of favorable market conditions.

Queensland Minister of Resources Scott stewart said the sale agreement between the meters and Peabody Energy Australia was great news for Queensland and will help our state’s Covid-19 economic recovery, ”said Stewart.

“This company will create more than 150 jobs through investments in underground expansions and the completion of remediation obligations.

“With an expected mine life of 22 years including rehabilitation, these are sustainable jobs and will create long-term royalties that will benefit everyone in Queensland. This investment is a strong sign of growing confidence in our resource sector as Queensland continues on its road to economic recovery. “

The Millennium and Mavis Downs mines will feature a mix of surface, high-wall and underground mining methods used to extract high-quality metallurgical coal.

The project will have a total production of 13.9 million tonnes of metallurgical coal over its lifetime.

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