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Isaac Plains

Project Overview

Location: Moranbah (7km East)

Nearest Port: Darlymple Bay Coal Terminal

Rail Line: Goonyella Branch

Mines in Region: Grosvenor, Goonyella, Carborough Downs, Coppabella, Millennium,

Coal Type: Coking & Thermal

Mining Method: Open-cut, dragline & truck shovel

Project Details

HIGHLIGHTS
  • Isaac Plains is an established mining asset, providing Stanmore with near-term cash flows
    • First revenues anticipated by mid 2016
  • Mining and transportation infrastructure in place
    • Includes dragline, coal handling & processing plant, and rail load-out facilities
    • Rail and port access agreements in place, exporting through to Dalrymple Bay Coal Terminal (DBCT)
  • Right scale of operation and risk profile
    • Mining scale of 1.1 Mtpa product coal provides for optimal mine economics to suit dragline and assumed take or pay profile
    • Contract mining provides lower risk for Stanmore in a competitive contracting market
    • Potential for future expansion via Isaac Plains East and underground mining at Isaac Plains
  • High value metallurgical coal products with market acceptance
    • Strong history of coal sales to major steel mills of Asia
  • High value metallurgical coal products with market acceptance
    • Strong history of coal sales to major steel mills of Asia
  • High value metallurgical coal products with market acceptance
    • Strong history of coal sales to major steel mills of Asia


1. ASSET OVERVIEW

The Mine

  • Commenced production in 2006 as a truck shovel operation
  • Dragline operations commenced in 2011/2012 
  • Historically targeted over 2 Mtpa of product coal
  • Placed on care and maintenance late 2014

Coal Handling and Preparation Plant (CHPP)

  • Coal trucked to the CHPP and washed to form a product at a total yield of 70-75%

Transport and Sales

  • Product coal is railed 172km to DBCT via the Gooneyella Rail System
  • Sold primarily to Japanese, Korean and Taiwanese steel makers

2. MINE LAYOUT – ISAAC PLAINS & ISAAC PLAINS EAST

  • Well laid out site with mine infrastructure located along western side of lease
  • Short spur connection to Goonyella Brach  Railway
  • Ease of access for potential Isaac Plains East extension via haul road
  • Close to camp accommodation facilities


3. ACQUIRED ASSETS

Product Split



  • Bucyrus BE1370
  • High performance machine. In last year of operation under previous ownership moved >15m bcm
  • Major pre-start service planned including replacement of swing rack

Train load out



  • CHPP, stockpile and train loadout in close proximity
  • Conveyorfeed to rail surge / loading bin

Coal Handling & Processing Plant




  • 500tph feed rate (3.5Mtpa) constructed in 2006
  • Belt press filter - no tailings dams
  • Flexible operating setup to produce multiple coal products

Office facilities and workshops




  • Established office setup includes comms and other infrastructure
  • Several maintenance workshops

4. GEOLOGY

  • The Leichhardt seam (Rangal Coal Measures)  averages 3.5m thick across the deposit. The seam splits into an upper and  lower section in the far northern area
  • Depth of cover commences at 60m, dipping to  the east of 6-7 degrees with a maximum depth around 230m in the north east  of the tenement
  • Nine year mining history provides significant information about the deposit
  • Isaac Plains – over 100 cored holes drilled in unmined portion of Mining Lease
  • Isaac Plains East – over 200 holes drilling within tenement area
  • Over 18 km of 2D seismic over combined  tenements

5. COAL RESOURCES RESERVES

  • Xenith Consulting Pty Ltd updated the  Resource and Reserve estimate for Stanmore in 2015 within the unmined Mining Lease area
  • Significant Resource coverage within Mining  Lease
  • Current Reserves support over 3 years of open cut mining at planned mining rate of 1.5Mtpa ROM


Note 1: Refer Competent Persons Statement
Note 2: Refer Reserves Note

5. COAL QUALITY

     
  • Historically sold primarily to North Asian steel makers - attractive coal qualities may broaden customer base
  • Plan to continue to produce three products;         
    • Semi-Hard Coking Coal        
      • Moderate ash and volatile matter content
      • Low impurities such as sulphur and alkalis  
    • Semi-Soft Coking Coal                 
      • Attractive volatile matter content, lower than Hunter Valley benchmark        
      • Low total sulphur with high calorific value
    • Thermal
    • High energy content with low sulphur, ash and nitrogen content, excellent handling characteristics, easy to grind.
  • Approximately 70% of historic production was coking coal

7. INFRASTRUCTURE POSITION

  • Approximately 1.1Mtpa of rail and port capacity
  • Further expansion capacity available in  current market environment
  • Total transport infrastructure costs under  A$15/tonne at steady-state production
  • Significant capacity within Isaac Plains  CHPP and train load out up to 2.8Mtpa of production

http://www.dbct.com.au/

8. ISAAC PLAINS EAST PROJECT

  • Ability to utilise 100% owned dragline once  Isaac Plains open cut mining is completed
  • Low cost coal – strip ratio starts at under 5:1
  • Significant potential synergies with Isaac Plains - minimal capital required to open up brownfield expansion (2km haul road and other minor infrastructure only)
  • Similar coal quality product expected based on historical results analysis


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