Shock at Mavis coal operation closure
By Industry Queensland
Workers at Stanmore Resources’ Mavis coal mine near Moranbah were shocked at today’s sudden announcement of closure plans, the Mining and Energy Union said.
Stanmore announced that it was taking steps to halt operations at the Mavis underground from the end of June and complete the transition by the end of next quarter.
MEU Queensland president Mitch Hughes said ensuring the Mavis workers, who were all employed by PIMS Mining, had redeployment opportunities would be the top priority.
Related: Stanmore shutters Mavis underground operation
“Our priority is to ensure that workers have a clear pathway into new employment opportunities and to avoid forced redundancies,” he said.
Mr Hughes also said that the MEU was concerned about Stanmore’s plan to seal the mine after closure.
“We have raised the issue of Stanmore planning to seal the mine to the Mines Minister, Scott Stewart,” he said.
“Our view is that there is no reason for Stanmore to seal the mine. If they don’t want the asset, then they should step aside for someone else who may want to take over.
“We just don’t see any reason for Stanmore to seal the mine and walk away.”
Mr Hughes said that the MEU was in discussions with PIMS Mining regarding next steps for workers.
A joint venture between Stanmore Resources and M Resources – MetRes – acquired the Mavis Downs and Millennium site from Peabody Energy Australia in July 2021 and brought it out of care and maintenance.
Stanmore took full ownership of the Millennium and Mavis Downs mines late last year by acquiring M Resources’ 50 per cent stake in the MetRes joint venture.
The company said its decision to cease operations at the Mavis underground project followed a comprehensive strategic review.
This review determined that, given its relatively short mine life, the project had proven to be uneconomic under current market conditions and coal prices, with comparatively higher costs driven, among other reasons, by the challenging ramp-up and lower production volumes achieved to date, the company said.
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