Isaac Plains Site Visit
Brisbane, Nov 23, 2016 AEST (ABN Newswire) - Stanmore Coal Limited (
ASX:SMR) is pleased to provide the press release regarding Isaac Plains Site Visit.
STANMORE COAL - COMPANY OVERVIEW
The business at a glance:
- Independent coal company with focus on coking coal
- Isaac Plains operational with ramp-up achieved
-- 1-2Mtpa sales opportunity (FY17 1.25Mt)
-- December 2016 quarter SSCC settled at USD 130 per tonne
-- Mining, port and rail contracts in place
-- Mid-range of international coking coal cost curve
- Isaac Plains represents the Company's platform asset
-- Circa $350m of replacement-cost assets
-- Dragline, CHPP, conveyors, train load out and other infrastructure 100% owned
-- Approvals in place for up to 4.0Mtpa ROM
-- Primarily coking coal with secondary thermal coal for export
- Multiple acquisition targets and internal projects for Stanmore to capitalise on
-- Grow internal production and operational capability
-- Focus on coal quality, reliability and creating value where others can't or won't
DEVELOPMENT HISTORY - THE HISTORY OF ISAAC PLAINS
- Located near Moranbah in the heart of the Bowen Basin, 172 km from Dalrymple Bay Coal Terminal (DBCT) via Goonyella rail line
- Commenced production in 2006 as a truck shovel operation
- 4.0Mtpa run of mine (ROM) production approvals currently in place
- Dragline operations commenced in 2011/2012 following the purchase of a Bucyrus BE1370
- Coal Handling and Prep Plant (CHPP) designed with a nameplate capacity of 500tph, with adjoining product stockpile, conveyors, train load-out facility, rail loop
- Sold into major steel mills primarily in Japan and Korea, producing a semi-hard and semi-soft coal product
- Placed on care and maintenance late 2014
SITE OPERATIONS - CONTRACTING STRUCTURE
PRINCIPAL CONTRACT OVERVIEW
- Head Contractor paid on a rolled-up rate basis a, which requires assumption of certain efficiency and operational risks
-- Waste rate ($/bcm) covering blasting and all overburden removal. Golding operate and maintain Stanmore's dragline (maintenance sub-contracted to G&S Engineering) as part of their overburden operations
-- Coal mining rate ($/bcm) covering mining and transport to the CHPP utilising Golding mining fleet
-- Processing rate ($/feed t) covering operation of the CHPP and TLO
- Sub-contractors engaged for specific work requirements with direct reporting lines to Golding
DRAGLINE - STANMORE OWNED
- Dragline purchased in 2006. Relocated to site in 2008 and originally refurbished and recommissioned 2011
- Contractor is responsible for planning and carrying out minor maintenance of the dragline. All maintenance activities are based on a plan developed jointly between Golding and Stanmore
- The dragline for the project to date has been operating at +16 million bcm per annum
COAL HANDLING & PROCESSING PLANT - STANMORE OWNED
- Designed nameplate feed capacity of 500tph
- "Dry" Rejects (i.e. no tailings dam)
- System uses:
-- A 2 Stage Dense Medium Cyclone
-- Jamieson Cell technology
-- Teetered Bed Separation
- Overall CHPP performance and throughput has improved over time given capital investment and learnings from the plant
STRONGER PRICING OUTLOOK - CONTINUED STRENGTH IN COKING COAL MARKET
- Contracted December quarter reflecting trend in spot market
-- Hard coking coal USD200 (up USD107.50 from Sep QTR)
-- Semi soft coking coal USD130 (up USD56 from Sep QTR)
-- Thermal coal USD94.75 (up USD30.15)
- Coking and thermal spot markets continue to remain tight - hard coking over USD300/t, semi-soft coking coal over USD140/t and thermal coal USD100/t
- Low coal prices for a number of years have led to significant underinvestment - lack of development assets and lead time for new production suggests limited supply response to higher pricing
To view tables and figures, please visit:
http://abnnewswire.net/lnk/L330P0J3
About Stanmore Coal Limited
Stanmore Coal (ASX:SMR) is an operating coal mining company with a number of additional prospective coal projects and mining assets within Queensland's Bowen and Surat Basins. Stanmore Coal owns 100% of the Isaac Plains Coal Mine and the adjoining Isaac Plains East Project and is focused on the creation of shareholder value via the efficient operation of Isaac Plains and identification of further local development opportunities. Stanmore continues to progress its prospective high quality thermal coal assets in the Northern Surat Basin which will prove to be valuable as the demand for high quality, low impurity thermal coal grows at a global level. Stanmore’s focus is on the prime coal bearing regions of the east coast of Australia.
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