Stanmore Coal has purchased the Isaac Plans coal mine from its owners Vale and Sumitomo Corp. for AUS$1. The mine had been placed into care and maintenance but Stanmore now aims to recommence mining at the site by 1H16 with an initial production rate of 1.1 million tpa.
The acquisition includes all assets relating to the mine, including a dragline, coal handling and processing plant, rail look, loading facility and mine infrastructure area. A number of contractual commitments also form part of the transaction terms including rail haulage and port contracts, accommodation services agreement, water supply and transportation arrangements and power supply contracts.
In exchange for releasing the vendors from these ongoing liabilities, Stanmore will receive a series of compensation payments within the first year after completion to be repaid via a production-based royalty based on coal price thresholds.
Isaac Plains contains an updated JORC Resources of 30.1 million t with opencast JORC Reserves of 5 million t. Stanmore also owns the Wotonga deposit, located immediately to the east of the Issac Plains site, and the company expects “significant capital and operational synergies”.
Stanmore will also take on responsibility for the AUS$32 million rehabilitation obligation for the site. This liability will be cash backed and reduce over time as rehabilitation activities are undertaken.
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/04082015/stanmore-buys-shuttered-isaac-plains-coal-mine-2679/