Green light for $100m South Walker Creek upgrade

Stanmore Resources has given the green light to a $100 million upgrade at South Walker Creek including a CHPP expansion and new maintenance workshop. The expansion project at the Bowen Basin coal mine may also see the introduction of three additional hired truck and excavator fleets. The $US69 million (just over $AU100 million) investment approved by the board is expected to roll out during 2023 and 2024, with the aim of hitting a new steady-state production rate of about 7.0Mpta from early 2025. It comes on top of a $183 million investment announced early this year for the Mulgrave Resource Area 2C (MRA2C) creek diversion project to open up new mining areas at South Walker Creek. Stanmore outlined the move in a quarterly report released today, where it also detailed progress on the Pit 5 North development at its Isaac Plains East mine and its southern levee extension project at Poitrel. “The approvals demonstrate the continued drive by Stanmore to maximise and accelerate shareholder value generation from our existing assets by implementing capital efficient organic improvement and growth projects,” chief executive officer and executive director Marcelo Matos said. Stanmore acquired the South Walker Creek and Poitrel operations last year along with a package of other BHP Mitsui Coal assets in the Bowen Basin, including Wards Well and other coal projects. The planned expansion of the South Walker CHPP to 1200 tph will involve construction of a dense media cyclone modular plant. This will be connected to the existing plant to increase washing capacity to about 9.4Mtpa of ROM coal feed to produce about 7.0Mtpa of saleable coal. A new maintenance workshop is planned to support the increased mining volumes and associated mobile fleets, as well as ancillary infrastructure. The company said the expansion project 'will also contemplate' introducing three more truck and excavator fleets, with additional operating expenditure commitments expected to increase mining capacity to 9.4Mtpa annualised rate by mid 2024. Related: Stanmore set for $183m creek diversion works Meanwhile it reported that clearing and grubbing works for the MRA2C project, along with powerline relocation works, are now 90 per cent complete. "The bulk earthworks contract has been awarded and is scheduled for commencement in 3Q 2023, and we expect to ramp up production of competitive ROM coals at this new pit in 1H 2025 in line with our previously announced plans," the company stated in its update to market. At Poitrel, the southern levee extension project is underway and on track to enable pit progression in the mine's southern ramps in 2024. At the Isaac Plains Complex, Stanmore reported that development of the Pit 5 North project at Isaac Plains East had commenced in the past quarter for additional mining production of 1.4 million tonnes of ROM coal over a period of two years. "A variation of our existing mining services agreement with EPSA Pacific has been concluded and includes the introduction of an additional truck and excavator fleet for a period of around 24 months from 2H 2023, as well as approximately $US2.5 million of capital expenditure for surface water management, culverts for a creek crossing and realignment of the 66kV overhung power line, clearing and grubbing and topsoil stripping," the company stated.

Green light for $100m South Walker Creek upgrade

Industry Queensland

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