Bankable feasibility in development
Construction work needs to start now to meet expansion goals near Moranbah
Wednesday 06 September 2017
Big improvements in production, prices and profits at the Isaac Plains coal mine are expected to underpin Stanmore Coal’s plans to expand operations into the nearby Isaac Plains East (IPE) coal deposit before the end of this financial year.
In its full year report released this week, Stanmore reported net profits of around $12 million driven by better coal prices, and a near 6 -fold increase in coal sales and production at the Isaac Plains mine. As a consequence of both these forces, total revenue was nearly ten times higher at $137.7 million, although the improvement was from a very low base.
“The Isaac Plains East project has progressed to the Bankable Feasibility Study (BFS) stage following the completion of the drilling program and the alignment of the mine plan against the Environmental Authority conditions,” Stanmore said.
“Detailed work on capital estimates, production sequencing and final environmental studies are underway and should generally align with the potential completion of the public notification period.
“It is forecast that subject to no objections being received, the mining lease and environmental authorities could be granted in the second quarter of 2018.
"The project is fully funded via either the recently extended financing facilities or company generated cash.”
Stanmore purchased IPE - formerly known as Wotonga - from Peabody for around $7 million in 2015, but said in July at the same time they lodged a mining lease application that they believed the deposit held coal worth nearly $900 million.
While the IPE will primarily operate as an extension of the Isaac Plains Mine and will utilise the existing infrastructure, mining equipment and workforce, there is about a years worth of construction required to get the mine operating.
New infrastructure required for the project will include haul and access roads, ROM coal stockpile areas at the top of the open cut pit ramps, vehicle parking zones, mobile crib huts, minor lay down areas, power infrastructure, stormwater drains, pit water pipelines and sediment control works.
If completed, IPE will extend the life of the Isaac Plains Mine by approximately seven years.