200 JOBS: Joint venture to acquire CQ mine
Two companies have joined forces to acquire and restart a Central Queensland mine, set to create an estimated 150 to 200 long-term jobs.
Stanmore Coal and M Resources have agreed to buy the Millennium and Mavis Downs metallurgical coal mine near Moranbah as part of a 50/50 joint venture called MetRes.
An underground expansion, along with continuation and completion of rehabilitation is tipped for the site after it was acquired from Peabody Resources.
MetRes chair Matt Latimore said the investment presented a great opportunity for an innovative and agile operation, with access to existing critical infrastructure already in place.
“The acquisition opens the way to extracting full value from the Millennium and Mavis Downs mines by streamlining operations through auger and open cut mining methods, followed by underground extension from the existing highwalls,” Mr Latimore said.
Caledon Coal founder Peter Seear, who oversaw the acquisition and operation of the Cook mine successfully for six years, will join the board of MetRes, bringing extensive underground and auger mining expertise to the venture.
Coal washing will be undertaken at the Red Mountain Infrastructure coal handling and preparation plant via a fully executed toll washing and train loading agreement and rail and port capacity to support the mine plan will come as part of the transaction.
M Mining will be the JV manager and operator of the mine.
Mining operations will restart from July 2021 with production ramping up to 1 mtpa.
JV partner Stanmore will provide a $30m finance facility, inclusive of a $15m working capital debt facility.
The JV will assume rehabilitation obligations and with the restart of mining, M Mining will restart rehabilitation activities.
“The acquisition and restart of Millennium and Mavis Downs Mine is a shot in the arm for Queensland’s economic recovery and for Central Queensland and we are excited to work with our partners, regional stakeholders, local and state government and long term customers in bringing this coal back to the market,” Mr Latimore said.
“This project will produce high quality metallurgical coal which is in high global demand and remains an essential component of the steel making process.
“Queensland is a reliable and high-quality supplier.”
Mines Minister Scott Stewart said he welcomed the announcement.
“This is great news for Queensland and will help with our economic recovery from the COVID-19 global pandemic,” Mr Stewart said.
“The resources sector has played a vital role in supporting jobs during the pandemic and will continue to do so into the future.
“The Palaszczuk Government has supported more than $21 billion in resource sector investment and created more than 8000 jobs.”