UNDERGROUND coal mining could add another 100 jobs at Isaac Plains coal mine
Stanmore Coal tips more coal mergers and acquisitions to come
The man who purchased the Isaac Plains coking coal mine in Queensland for $1 says, in his mine, the coal sector will see even more mergers, joint ventures and acquisitions in the future. They secured $350 million worth of operating assets in the deal.
An 18,000-tonne shipment has already left Dalrymple Bay, bound for a steel mill in Korea last week, with more shipments planned.
Stanmore Coal managing director Nick Jorss said whilst speaking at the re-opening of Isaac Plains, said his company would be keen to purchase coal mines that are put up for sale by multinationals such as Rio Tinto, Anglo American and Peabody Energy.
While Stanmore Coal is working to get its Isaac Plains into regular production, Mr Jorss said his company could buy more coal mines in the future.
“We are absolutely keeping an eye out for other opportunities, we looked at 50 assets before we looked at this. We kissed a lot of frogs,” he said.
“There are other assets around at the moment and this is a time in the market when we want to be out there buying assets so absolutely we will look for further growth.”
The mine was closed in 2014 by the previous owners Brazilian miner Vale and Japanese trader Sumitomo. They then sold it to ASX-listed Stanmore in July 2015.
There have been many things that helped Stanmore convert the loss-making mine into a profitable business.
The company has jointed the mine to an adjacent coal tenement, and in doing so, increased the life of the Queensland coal mine from three years to over ten years.
It will also use a dragline which is hoped will help deliver a more efficient operation.
Stanmore is also gong to use local workers to operate the mine, with potential savings again being realised by not using FIFO workers.
Shifting from explorer to exporter
Nick Jorss said they have gone against the tide in the coal sector to create value for their investors. He believes Stanmore picked the right point in the current coal cycle to shift from explorer to exporter; and with operating costs reduced by 35 per cent, the future looks good.
Before the Isaac Plains coal mine was shuttered, production was around 2.8 million tonnes per year. However, the mine is expected to produce about 1.1 million tonnes a year.
Stephen Bizzell, who made a killing riding the coal seam gas boom with companies like Arrow Energy is a shareholder and director of Stanmore. He said the Isaac Plains mine restart should be well placed to ride a forecasted rising coal price.
“Whether it is in one year, three years or five years, we should see a strengthening in the price of coal; and as a result, it should be a good long-life mine here,” he said.
International coking coal prices rose about 23 per cent since the beginning of 2016, although the price has dipped in recent weeks to around $US90 per tonne.
Looking at those projected production totals of 1.1 million tonnes, the expected earnings for Isaac Plains coal mine could be around $99,000,000, should the price remain at $90 USD a tonne, around $247,000,000 AUD. With mine site running costs, who knows what the bottom line of profitability is for Stanmore coal, although with more jobs being created for local mine site contractors and tight fiscal control of expenses and operating costs, this is one success story to watch, especially when mining jobs in Queensland are being created.
Looking for a mining job close to Moranbah?
The best advice we can give is to find out as much information as possible about the company. There are two websites to visit (see below).
The next step is to head on over to the Australia Stock Exchange (ASX) to learn more about Stanmore Coal – as it is a listed company. The ASX is the place you will discover greater details about the company, who runs it, accurate details regarding the financial situation of the company.
Search for jobs on the popular jobs boards like SEEK, Indeed and Jora.
Keep your mining qualifications up to date; especially the Standard 11 or Standard 11 Refresher course. For many mine workers, upskilling is also important to progress into management. Consider the Supervisor training course or move into Training and Assessing, or WHS.
Learn more about the Bowen Basin mining location.
The Bowen Basin contains the largest coal reserves in Australia. This major coal producing region contains one of the worldâ€™s largest deposits of bituminous coal.
The Basin contains much of the known Permian coal resources in Queensland including virtually all of the known mineable prime coking coal. It was named for the Bowen River, itself named after Queenslandâ€™s first Governor, Sir George Bowen.
The Bowen Basin covers an area of over 60,000 square kilometres in Central Queensland running from Collinsville to Theodore and is dotted with many coal mines operated by multiple mining companies.
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Resources and Infrastructure Industry (RII)
Commonly refered to as Black Coal Competency (BCC), the RII competency is one that can be attained by an operator who has previously worked in the industry and has completed a number of operating hours on various types of machinery.
RII competency is granted to prove correct and safe operation of mine site machinery. It is a very useful qualification to have, as it confirms the operator has the required experience and expertise.
You can transfer your nationally recognised civil Excavator, Front End Loader or Dozer tickets only to RII Black Coal Competencies.