The production marks a significant milestone for the company and signifies our recent transition from explorer to producer, Stanmore managing director Nick Jorss said.
“We have a steady flow of run-of-mine (ROM) coal from mining operations and stockpiles to deliver the first shipments to our top tier Asian steel mill customers; the first of which is planned for early May.
“This milestone represents the culmination of a significant effort by the Stanmore team. The board would like to thank the employees, key consultants and contractors to the company for their hard work as we enter the next exciting phase of growth for the business.”
The company appointed its main contractor and finished recommissioning equipment that it purchased from the mine’s former owner Vale last year.
Mining will commence at a target rate of 1.1 million tonnes per annum of product coal, selling a high proportion of metallurgical coal with a thermal coal by product.
In December 2015 Stanmore appointed Golding Contractors as the head contractor at Isaac Plains with a scope of services including overburden removal, coal mining and operation of the coal processing plant.
The majority of recommissioning works was undertaken in November and December 2015 with the dragline overhaul completed in January under budget. Minor works are nearing completion at the coal processing plant.
Optimised mine plan and low cost mining approach result in a reduction of FOB unit costs by around 35% (compared to prior operations), placing the mine in the second quartile of a margin-adjusted global metallurgical coal cost curve.
