A subsidiary of Stanmore Coal Limited has agreed to purchase the Isaac Plains Coal Mine from Vale, South Australia, and Sumitomo Corporation for $1 consideration.
The acquisition includes all assets held by the joint venture participants in relation to the mine including a dragline, coal handling and processing plant (CHPP), rail loop, loading facility and mine infrastructure area.
Upon completion of the transaction the joint venture will be dissolved and Stanmore will own 100% of Isaac Plains.
The company is targeting mining recommencement for 2016 at an initial production rate of 1.1Mt per annum.
With the acquisition price at $1, Stanmore will be assuming all outstanding contracts including transport infrastructure access arrangements. Significant capital and operational synergies are anticipated with the recently acquired Wotonga deposit, located immediately to the east of Isaac Plains.
“It’s an exciting time for the Stanmore team as we prepare to join the ranks of Australia’s coking coal producers in supplying high quality coal to the large steel mills of Asia,” Stanmore managing director Nick Jorss said.
“We have carefully assessed over 40 growth opportunities in coal over the past two years before selecting Isaac Plains and Wotonga as the right fit for our strategy and risk appetite.”