Australia-based metallurgical coal supplier Stanmore Resources has announced that it has entered into a definitive agreement to acquire the remaining 50 percent interest in the Eagle Downs metallurgical coal project and 100 percent interest in the Eagle Downs South tenements from Australia-based Aquila Coal, a subsidiary of Chinese steel producer Baowu Steel Group. Stanmore has offered $US15 million upfront, with $US20 million to be paid from the first 100,000 mt of longwall coal mined.
In February this year, Stanmore also entered into a definitive agreement to acquire global premium-quality hard coking coal producer South32’s 50 percent interest in the Eagle Downs project, as SteelOrbis previously reported.
With the completion of the acquisition, which is part of the company’s ambition to expand its footprint in Queensland’s premium metallurgical coal basin, Stanmore will have 100 percent ownership of both projects. Previously, Stanmore had been negotiating with Baowu Group for the purchase of a further 30 percent stake in the project instead of the remaining 50 percent. Completion of the acquisition is expected during the second half of 2024.
