FIRST coal and official opening less than a year after $1 purchase.
Wednesday 18 May 2016
Stanmore Coal is hosting local dignitaries and investors at an official opening of its Isaac Plains mine today.
The official opening follows Stanmore shipping its first Isaac Plains coal through Dalrymple Bay Coal Terminal last week, nine months after it acquired the mine.
“We are very proud to have joined the ranks of coal producers from Queensland’s Bowen Basin, which supplies some the highest quality coking coal in the world as an essential raw ingredient to the steel industry,” Managing Director Nick Jorss said.
“We are also very pleased to be contributing significant direct and indirect employment opportunities, as well as kicking off the flow of millions of dollars in royalties each year to the state of Queensland.
“On behalf of the board I would like to express our sincere thanks to the contractors and consultants, and to the 150 workers now employed at Isaac Plains who have worked hard to restart the mine in such a rapid and safe manner.”
Stanmore paid just $1 to acquire the mine and its approximately $30 million worth of rehabilitation liabilities last year. In 2011, Japan-based Sumitomo Corporation paid $430 million for a half share in the Isaac Plains mine. Clearly there are a suite of differences between 2011 and 2015, notably the value of coal, and the fact that when Stanmore bought the mine, it was on care and maintenance because the former owners couldn’t make a profit with it operating.
Queensland Resources Council Chief Executive, Michael Roche said the restart of the mine was a great shot in the arm for an industry that had been hit by decade-low commodity prices.
“The official opening is big news for the Bowen Basin in what have been gloomy times for the once booming sector,’ Mr Roche said.
“It is great to see the Queensland Premier here today, which signifies her acknowledgement of the value of our sector to the government, which received $2.1 billion in royalties last financial year.“That $2.1 billion was the equivalent of funding the salaries of 35,000 teachers, 30,000 nurses or about 32,000 police officers. Or, in the case of Stanmore Coal, that $7 million could annually fund about 100 nurses, 104 police or 118 teachers.”