The contract at Isaac Plains is for a term of three years, producing 3.3 million tonnes of product coal over the term.

Stanmore managing director Nick Jorss said the company is on track for its first coal shipment from Isaac Plains in April, creating approximately 150 new jobs in the Moranbah region.

“Challenging commodity markets have presented an exceptional opportunity for Stanmore and in early 2016 we will become an independent producer of high quality coking coal for export to the steel industry in the region,” he said.

After a competitive tender process spanning five months, Golding was selected based on an all-inclusive pricing structure which categorises activities into three operational areas: waste removal, coal mining and coal processing.

Stanmore remains responsible for the provision of certain principal supplied plant such as the dragline and wash plant and certain services such as power, water and accommodation.

Golding will take on full site responsibilities including the statutory positions of Coal Mine Operator (CMO) and Site Senior Executive (SSE), operation of Stanmore’s dragline, supply of truck and shovel and ancillary equipment, hire of operational personnel and plant maintenance.

In relation to the wash plant activities, Golding will engage an experienced subcontractor to provide operational expertise and personnel.

The new mine plan results in unit FOB cost reductions of around 35% relative to recent mine performance due to an optimised mine plan at a lower throughput which maximises the use of the dragline relative to truck and shovel for overburden removal and mining lower strip ratio coal in the northern pits only.

Queensland Resources Council CEO Michael Roche said: “The Queensland resources sector continues to prove its value and resilience with Stanmore Coal Limited re-opening the Isaac Plains coking coal mine in central Queensland, creating about 150 new jobs.

“Stanmore’s approach and ability to produce high quality coking coal for export at the bottom of the market proves there are still opportunities that exist for the coal industry despite changing and challenging conditions.”