New owners reveal Millennium restart plans
A joint venture of M Resources and Stanmore Coal (now known as Stanmore Resources) have an agreement to acquire the mothballed assets from Peabody Energy for an upfront payment of $1.25 million plus royalties.
Director and owner of M Mining, Matt Latimore, said the mining services agreement with CAS provided a low-cost, competitive mining option with no need to strip overburden and no capital outlay.
“The scheduled auger production over the next 12 months provides us with baseload coal tonnage and will provide significant operating cashflows to support the transition to underground mining in mid-2022,” he said.
M Mining is the joint venture manager and operator of the proposed mining activities.
This will be the fourth time that CAS has augered at Mavis Downs and Millennium and this experience is expected to help fast-track the production schedule.
M Mining said the agreement with CAS would conclude once successful mining of all safe and economic mine areas had been completed.
“We’re delighted to support the fast restart of Millennium mine and to assist with deriving early value from this coal resource,” CAS managing director Bret Leisemann said.
“We are proud to support Queensland’s newest producer in the metallurgical coal industry.”
The Millennium and Mavis downs pits are located near Stanmore’s Isaac Plains coal complex outside Moranbah.
Completion of the sale transaction is progressing, with settlement to occur in June 2021.
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