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Stanmore Coal has snapped up the Wotonga South coking coal deposit and another exploration tenement for $30 million from Peabody Australia's Millennium Coal.

The tenements are adjacent to Stanmore Coal's Isaac Plains operation near Moranbah.

The company said the acquisition would allow it to develop an open-cut mining operation with the potential to extract about 15-20 million tonnes of coal - extending the life of the Isaac Plains operation.

This would be part of the Isaac Plains South project.

Stanmore Coal managing director Dan Clifford said this acquisition represented the culmination of work over the past three years to assemble a long-life resource base for the company.

"With the acquisition and permitting of Isaac Plains East and now the acquisition of Wotonga South, Stanmore can cement its 'capital light' approach utilising our regional advantage and infrastructure," he said.

"With this significant step taken, and the bankable feasibility study under way for the Isaac Plains Underground, the company has a clear pathway for the full utilisation of the circa $350 million replacement value infrastructure at Isaac Plains acquired by the company in 2015 and supports a significant improvement in EBITDA and cash flow from operatiosn for the company over the next 15-year period."

Stanmore Coal in $30m deal