Stanmore ceases operations at Mavis Underground

This review determined that, given its relatively short mine life, the Mavis Underground project has proven to be uneconomic under current market conditions and coal prices, with comparatively higher costs driven among other reasons by the challenging ramp up and lower production volumes achieved to date.

Discussions with the mining services contractor PIMS and associated consultation with the workforce have started, with production operations at the Mavis UG expected to cease by the end of June followed by closure and sealing of the Mavis UG pit, with the Millennium Complex as a whole is expected to reach steady state minimum expenditure care and maintenance regime by the end of 3Q24.

The potential Millennium underground development option is unaffected by this decision, although, as with any capital project, it will be subject to capital allocation and prioritisation strategy, as well as the same internal investment criteria as the various other capital project options within the Stanmore portfolio.

Notwithstanding this decision, the company does not expect consolidated guidance metrics to be impacted, as its core operations at South Walker Creek, Poitrel, and the Isaac Plains complex are expected to continue to perform strongly this year.

Read the article online at: https://www.worldcoal.com/coal/04072024/stanmore-ceases-operations-at-mavis-underground/