Stanmore Begins Shutdown of Its Mavis Underground Coal Mine, Australia
[Click image to enlarge]
Stanmore Resources has decided to start the steps to cease operations at the Mavis Underground Mine following a comprehensive strategic review.
This review determined that, given its relatively short mine life, the Mavis Underground Mine has proven to be uneconomic under current market conditions and coal prices, with comparatively higher costs driven among other reasons by the challenging ramp up and lower production volumes achieved to date.
Discussions with the mining services contractor PIMS and associated consultation with the workforce have started, with production operations at the Mavis UG expected to cease by the end of June followed by closure and sealing of the Mavis UG pit, with the Millennium Complex as a whole is expected to reach steady state minimum expenditure care and maintenance regime by the end of 3Q 2024.
The company said the potential Millennium underground development option is unaffected by this decision, although, they said it will be subject to its capital allocation and prioritization strategy and to the same internal investment criteria as the various other capital project options within the Stanmore portfolio.
Stanmore Resources controls and operates the South Walker Creek, Poitrel, Isaac Plains Complex, and Millennium Complex metallurgical coal mines as well as the undeveloped Wards Well, Isaac Plains underground, and Isaac Plains South projects, in Queensland’s prime Bowen Basin region. Stanmore Resources holds several additional high-quality prospective coal tenements located in Queensland’s Bowen and Surat basins. The company is focused on the creation of shareholder value via the efficient operation of its mining assets and the identification of further development opportunities within the region.
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
Copyright © 2024 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
For licensing permission, .(JavaScript must be enabled to view this email address)
