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Queensland mine bought with K2.99 to reopen

Admin | 6:29 PM | |
 A Queensland coal mining company will reopen a mothballed mine less than a year after purchasing it for $1 (K2.99).

Stanmore Coal says the Isaac Plains mine is on track for first shipment of coking coal in April 2016.
The mine’s reopening is set to create 150 jobs and restart the flow of more than $7 million (K20.91 million) a year in royalties to the Queensland Government.

Stanmore Coal announced on Thursday it had awarded a three-year contract for the central Queensland mine to Golding Contractors, paving the way for the production of 1.1 million tonnes of coking coal per annum.

It was only last July the company agreed to pay K2.99 for control of the mine from Brazilian mining giant Vale and Japanese firm Sumitomo, which established the mine in 2006 before halting production in September 2014.

“Challenging commodity markets have presented an exceptional opportunity for Stanmore and in early 2016, we will become an independent producer of high quality coking coal for export to the steel industry in the region,” Stanmore Coal managing director Nick Jorss said.
The Queensland Resources Council said the reopening was proof of the resources sector’s value and resilience.
Although it added the jobs had come at a critical time for regional Queensland, which has been hard hit by the downturn in the sector.
“The reopening will give us hope though we have been hit hard by the global downturn on commodity prices,” the Queensland Resources Council stated. –  AAP