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csg (L-R) Dwayne Parsons was awarded Best Back Port fifo Greg Byrne, Downing; Ian Reed, QNP dragline (L-R) Megan Smith was named Best Utility, seen with Coaching staff Steve Beale and Chris Dunphy, MIPEC Best and Fairest was won by Rhys Giles Crushettes Players Player was Michelle Cummings Best forward for Crushettes was Lauren Pingel Aboutusgeneric_2 Crushettes Rookie of the Year was won by Zoe Mackay Aboutusgeneric_1 Construction
csg (L-R) Dwayne Parsons was awarded Best Back Port fifo Greg Byrne, Downing; Ian Reed, QNP dragline (L-R) Megan Smith was named Best Utility, seen with Coaching staff Steve Beale and Chris Dunphy, MIPEC Best and Fairest was won by Rhys Giles Crushettes Players Player was Michelle Cummings Best forward for Crushettes was Lauren Pingel Aboutusgeneric_2 Crushettes Rookie of the Year was won by Zoe Mackay

Mining lease lodged
$890 million worth of coal for just $7 million
Wednesday 26 July 2017  

Stanmore Coal has lodged a mining lease application this week for the development of the Isaac Plains East (IPE) coal deposit nearly adjacent to their existing Isaac Plains mining operations.

Stanmore purchased the tenement - formerly known as Wotonga -  from Peabody for around $7 million in 2015

Which seems like a good buy, considering that in its application Stanmore predicted the coal produced from IPE over the life of the project would be worth around $890 million (assuming long run average price of US$83.91/t and US$68.23/t for semi soft coking and thermal products respectively, and average exchange rate of AU$0.77/US$).

While the IPE will primarily operate as an extension of the Isaac Plains Mine and will utilise the existing Isaac Plains Mine 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, storm water drains, pit water pipelines and sediment control works.

It will extend the life of Isaac Plains Mine by approximately seven years.

One of the biggest hurdles for Stanmore Coal has been getting landholder agreements with its neighbours.

“Progress during the June quarter resulted in the recent finalisation of negotiations with landholders allowing the public notification process to be triggered,” Stanmore said.

“This delay has resulted in the targeted potential first production from Isaac Plains East moving into Q4 FY18 subject to no objections during the process and timely processing of the approvals.”

The Isaac Plains East Project area has been extensively explored and has 18.7 Mt Indicated and 10.7 Mt Inferred coal resources (JORC).

Current projections are for about 1.5Mt of Run of Mine (ROM) coal a year with exports of about 1.1Mtpa. The strip ratios range from 11.17bcm/t to 13.8bcm/t.

Because the project will bolt on to existing operation, Stanmore Coal is not anticipating significant new jobs. However, it does believe the development will have benefits for the local community.

“The social impacts and benefits of the project are a retention of workers and employment levels in the local area,” they said.

In February this year, Condamine businessman and farmer Lyn Brazil invested nearly $A10 million into Stanmore Coal boosting the company's financial position considerably.

Mr Brazil was ranked the 55th richest person in Queensland by the Courier Mail in 2014 and has extensive interests in agriculture and property. Perhaps his most well-known investment was in online room booking business Wotif, which netted him around $30 million when it recently sold for about $700 million.

Mr Brazil bought around 16 million shares in Stanmore Coal which has given him control of just under 6.5% of voting stock, making him a significant, but minority shareholder in one of Central Queensland’s newest coal companies.

 

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