NewsBite

Exclusive

How metallurgical coal mine expansion approval will create 250 new jobs

The mine is forecast to produce up to 2.5 million tonnes per annum of metallurgical coal for up to 10 years, as well as $200 million in royalties.

Premier Annastacia Palaszczuk visiting the Isaac Plains coal mine.
Premier Annastacia Palaszczuk visiting the Isaac Plains coal mine.

Construction will begin next month on an $82 million extension to the existing Isaac Plains metallurgical coal mine, supporting up to 550 jobs in the Central Queensland coalfields.

Resources Minister Scott Stewart has announced the final government approvals and go-ahead for Isaac Downs mine, a third mine on the Isaac Plains complex near Moranbah.

“Queensland’s resources sector has continued to operate throughout the pandemic, supporting an average 76,000 jobs,” he said.

“I welcome Stanmore’s ongoing investment and confidence in regional Queensland.

Isaac Plains Coal Mine near Moranbah. Picture: Tara Miko
Isaac Plains Coal Mine near Moranbah. Picture: Tara Miko

“This project will mean mining jobs for another 10 years, including for the 300 mine workers currently at Isaac Plains, as well as jobs completing rehabilitation in the Isaac Plains East area until 2025.

“Isaac Downs will create up to 250 new construction jobs and business opportunities in and around Moranbah, as well as broader economic benefits for the Isaac region.”

The new mine is forecast to produce up to 2.5 million tonnes per annum of metallurgical coal for up to 10 years, as well as $200 million in royalties.

The Isaac Plains coal mine in the Bowen Basin.
The Isaac Plains coal mine in the Bowen Basin.

Isaac Downs will continue to create jobs once coal production has ceased as well, with six years of site rehabilitation to be conducted before the land is handed back to the community.

In an announcement on the ASX, Stanmore says this mine approval ensures ongoing employment opportunities for the Moranbah area and economic development in the region.

Stanmore chairman Dwi Suseno said the approval of the Isaac Downs mining leases was a major milestone for the company.

“This enables us to proceed with a critical project for the longevity and extension of the open cut operations supporting our Isaac Plains Complex, maintaining Stanmore as a competitive producer of essential ingredients for steel production by our global customers.” he said.

View of the Stanmore Coal's Isaac Plains mine.
View of the Stanmore Coal's Isaac Plains mine.

Chief Executive Officer Marcelo Matos said Stanmore was “committed to participating in community development in the Isaac region”.

“Isaac Downs will ensure ongoing employment opportunities for the Moranbah area as well as enhancing the economic development of the region,” he said.

Stanmore bought the mothballed Isaac Plains site in 2015, taking on the task of reactivating the mine which now employs up to 300 people, producing metallurgical coal for export to Asian and European steel manufacturers.

Mining is expected to ramp down at Isaac Plains East at the end of this year and transition to the newly approved Isaac Downs pit by late January 2022.

The Department of Transport and Main Road has approved the construction of an underpass bridge on the Peak Downs Highway to separate mine traffic and highway traffic.

Further civil construction activity is expected to be established on the site in August to build haul roads and a flood protection levee.

The ASX announcement says the approval includes more than 200 individual conditions.

“Stanmore has taken a progressive and cooperative approach in developing and agreeing to these conditions and proposing management and monitoring plans to ensure an ongoing commitment to managing the environmental impacts of the project and future operations at Isaac Downs,” it reads.

In the company’s quarterly report, it says there have been no recordable injuries and the company was expecting an increase in coal mining production and sales.

“Standmore ... continued to operate in the quarter with reset and reduced fleet capacity focusing on higher productivity and lower cost mining equipment and on minimising strip ratios and costs,” the report reads.

“Coal mining commenced at the exploration bulk sample pit at Isaac Downs for the purposes of providing trial cargoes to key customers.

“The company expects an increase in coal mining production and sales in the second half of the calendar year to at least our system capacity levels of 2.4 Mtpa by ramping up volumes envisaging benefiting from better market conditions and prices as output from Isaac Downs ramps up with the mining leases now granted.

“Product coal volume for the current quarter at 379kt was higher than total sales for the quarter of 293kt shipped due to timing of shipments with slippages into July 2021.”

Add your comment to this story

To join the conversation, please Don't have an account? Register

Join the conversation, you are commenting as Logout

Original URL: https://www.couriermail.com.au/news/queensland/mackay/business/how-metallurgical-coal-mine-expansion-approval-will-create-250-new-jobs/news-story/fdb5d0ac0c40e867a56ea16243667db3