Australia-based metallurgical coal supplier Stanmore Resources has announced that it has entered into a definitive agreement to acquire global premium-quality hard coking coal producer South32’s 50 percent interest in the Eagle Downs Metallurgical Coal Joint Venture Project in Australia and 100 percent of the shares in Eagle Downs Coal Management Pty Ltd. The acquisition of Eagle Downs is consistent with Stanmore’s ambition to expand its footprint in Queensland’s premium metallurgical coal basin.
Stanmore has offered $US15 million upfront, with $US20 million to be paid from the first 100,000 mt of longwall coal being mined. Completion of the acquisition is expected by the end of the second quarter of 2024.
The other 50 percent interest in the project is held by Australia-based Aquila Coal, a subsidiary of Chinese steel producer Baowu Steel Group. Stanmore Resources stated that it is negotiating with Baowu Group for the purchase of a further 30 percent stake in the project, which would make it the controlling shareholder.
Eagle Downs mine has a potential to annually produce 4-6 million mt of high quality, low volatile hard coking coal.
