Australian coal miner Stanmore has entered into an agreement with Anglo American and Exxaro, the participants of the Moranbah South joint venture, to explore and study a designated area of tenements adjacent to Stanmore’s Isaac South project.

The studies will evaluate the potential for a large-scale mining operation that spans Stanmore’s Isaac South project and the adjacent Rangal coal measures.

Stanmore notes that the coal deposit sub-crops within the designated area, providing additional low strip ratio coal that could significantly enhance the economics of the Isaac South project. This expansion could potentially double the mine life and volumes of the existing tenement alone, with initial strip ratios expected to start at around 4-5:1 run-of-mine (RoM), leading to lower operating costs and a quicker timeline to uncover first coal.

Initial designs suggest that the project will require minimal capital investment, leveraging the proximity to existing operations at Isaac Downs. The brownfield expansion would necessitate only basic infrastructure, such as haul road connections, water management systems, and pit development. The designated area’s strategic location adjacent to Isaac Downs and near the existing infrastructure of the Isaac Plains Complex and Poitrel CHPP further bolsters the project's feasibility.

“This transaction paves the way for the development of our Isaac South project in a more competitive and lower average strip ratio basis, as a natural capital efficient brownfield extension of our current Isaac Downs mine, prolonging the overall mine life at our Isaac Plains Complex,” said CEO Marcelo Matos.

The designated area is expected to contribute an estimated 50% of the total mineable resource for the enlarged Isaac South project, with production anticipated to consist of high-quality metallurgical coal, similar to that currently mined at Isaac Downs.

Stanmore plans to advance exploration activities in the designated area to finalise project studies, define the scope of work, and conduct necessary fieldwork to support mining approvals. The company aims to lodge all regulatory submissions for the Isaac South deposits, including the designated area, and develop haul road and associated infrastructure by 2025.

“We will now work closely and swiftly with state and federal government departments and regulators to progress the environmental impact studies and all associated work and secure all required regulatory approvals to submit an investment case for internal approval to start construction of the new pit and associated infrastructure,” Matos added.

“It will be important to ramp up operations on time to ensure we have continuity of operations at our Isaac Plains Complex, which may potentially add another 15 years at the same rate of four-million tonnes per annum of RoM coal mining, and likewise ensure continuity of employment for our workforce at the Isaac Plains Complex.”