Stanmore Coal has signed a significant offtake agreement for its Isaac Plains metallurgical coal with an East Asian steel producer. Details of the supply agreement have not been made public, but Stanmore said it represented a ‘material portion’ of the semi-soft coking coal that will be produced at Isaac Plains.
“We are very pleased to sign this significant sales contract with one of the largest steel producers in Asia,” said Nick Jorss, Stanmore’s Managing Director. “This foundation contract provides a strong platform for Stanmore’s coking coal sales in the lead up to production. A number of other contracts are under negotiation with top tier steel producers.”
The restart of coal production at Isaac Plains, which Stanmore bought last year from Vale and Sumitomo Corp, is on track for April. Mining contractor, Golding Contractors, has taken over operational responsibility for the site following approval of the mine plan by Queensland’s Department of Environment and Heritage Protection, with drill and blast work underway and the dragline ready for operations after an overhaul. The coal wash plant is not being ready for first coal production next month.
“On average each year we use around 215 kg of new steel per capita across the globe,” concluded Jorss. “This goes into a range of applications from major infrastructure, such as mass transit system, water and energy to housing, cars and kitchen appliances. Our coking coal produced a t Isaac Plains will create over 700 000 t of steel each year, enough to build a new Sydney Harbour Bridge every month.”
Stanmore Coal bought the Isaac Plains mine for US$1 last August from Brazilian mining giant, Vale and Japanese trading house, Sumitomo Corp. The reopened mine will reportedly create 150 new jobs and produce 1.1 million t of metallurgical coal. The mine is located east of Moranbah in the Bowen Basin of northern Queensland.
Edited by Jonathan Rowland.