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A bankable feasibility study has given the official thumbs up for Stanmore Coal’s $85 million Isaac Downs project.

Isaac Downs would be developed as a satellite operation to Stanmore’s Isaac Plains Complex near Moranbah, with an expected output of 2.5Mtpa saleable coking coal.

The company said the project had been established as an attractive investment proposition, with an all-in capital cost of $85.2 million generating a net present value of $214 million and internal rate of return of 139 per cent.

The recommended outcome of the BFS study, led by Palaris Australia, is to proceed to the development stage for the Isaac Downs project utilising the existing Isaac Plains infrastructure (including the CHPP and train loadout) and the long-term port and rail logistic agreements already in place.

Under the BFS mine planning scenario, the initial Isaac Downs box-cut will be established where the coal seam is close to the surface, using an excavator and truck operation at low strip ratios.

The dragline would subsequently be ‘walked’ from Isaac Plains to Isaac Downs and a standard Bowen Basin dragline operation established from north to south, supported by excavator and truck pre-strip operations.

Stanmore said the new mine would require a $63 million capital investment for construction activities and an additional $22 million was allocated in the study for project management costs, payments related to environmental approvals and third party agreements, and equipment transfer costs to move the dragline to the new location.

The major infrastructure required for Isaac Downs is:
• New haul road connecting Isaac Downs to the CHPP at Isaac Plains
• A bridge to allow the haul road to pass under the Peak Downs Highway;
• A new access road to Isaac Downs from the Peak Down Highway;
• Water management infrastructure;
• Site drainage infrastructure;
• A flood protection levee to protect the mine from Isaac River flood waters;
• A mine infrastructure area (MIA) including crib facilities, car and bus parking, dome type workshops, storage, heavy and light vehicle wash downs, fuel and lubricant storage, waste storage etc;
• Secure explosives magazine and reload areas; and
• Power supply connecting Isaac Downs to Isaac Plains

The EIS for Isaac Downs has been through the public notification stage and Stanmore is finalising its response to all submissions.

The company said it was anticipated that a Supplementary EIS and response to submissions would be submitted to the State Government by the end of the year.

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