Moth­balled coal mine bought for $ 1

Townsville Bulletin - - NEWS -

A QUEENS­LAND coal min­ing com­pany has bought the re­cently moth­balled Isaac Plains mine in the Bowen Basin for just $ 1.

Stan­more Coal plans to restart pro­duc­tion at Isaac Plains in the first half of 2016, more than a year af­ter 300 jobs were lost when pro­duc­tion was halted.

At cur­rent coal prices, the mine could op­er­ate for another three years, the com­pany said. Stan­more has agreed to pay $ 1 for con­trol of the mine from Brazil­ian min­ing gi­ant Vale and Ja­panese firm Su­mit­omo, which es­tab­lished the mine in 2006 be­fore plac­ing it un­der care and main­te­nance in Septem­ber 2014.

It will also be com­pen­sated by Vale and Su­mit­omo for some of the con­trac­tual obli­ga­tions it will in­herit, and re­pay that com­pen­sa­tion over time through roy­al­ties.

“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,” man­ag­ing di­rec­tor Nick Jorss said.

Stan­more plans to re­turn Isaac Plains to pro­duc­tion of 1.1 mil­lion tonnes per an­num, less than half the 2.8 mil­lion tonnes pro­duced at its peak.

BIG PLANS: Isaac Plains coal mine may re­open next year at a re­duced level of pro­duc­tion.

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