MetRes expects to ship its first coal from the the Millennium and Mavis Downs metallurgical coal mine in Queensland in October after it begins mining next month.
MetRes is a joint venture between Stanmore Resources and M Resources, which first announced the acquisition of the Millennium and Mavis Downs mine from Peabody Energy in April.
With the acquisition now complete, mining activity is on track to commence in August 2021.
According to MetRes chairman Matt Latimore, rail and port contracts are under way.
“We are delighted to see the project moving to completion of the sale,” he said.
“We are well advanced towards operational recommencement, initially by open cut and auger production for delivery of product to market in October 2021.
“Rail and port contracts have been executed and we are experiencing strong enquiry for our high quality met coal.”
Millennium and Mavis Downs will follow the coal auguring and open cut mining methods with underground mining in the future.
MetRes hired Coal Augering Services for auger operations at the site.
“Preferred suppliers for open cut and site services contracts have been narrowed, and contracts will be awarded in the very near future,” MetRes stated.
Latimore said coking coal prices have almost doubled since the acquisition was announced in April, putting the site in a strong position to meet market demand.
“When we announced this acquisition to the market back in April, prices for premium hard coking coal were $110/tonne FOB (free on board) and we were already very confident about the project economics,” he said.
“With prices now over $210/tonne, we have the opportunity to commence production quickly and capitalise on current market conditions.
“With employment ramping up to over 150 jobs in the coming months and with the award of site and open cut contracts, Millennium will again be making a significant economic contribution to the Moranbah region and to Queensland.”
Queensland Minister for Resources Scott Stewart welcomed the completion of the acquisition.
“With a predicted mine life of 22 years including rehabilitation, these are lasting jobs and will create long-term royalties that will benefit all Queenslanders,” he said.
“This investment is a strong sign of the growing confidence in our resources sector as Queensland continues its road to economic recovery.”
Millennium and Mavis Downs is expected to produce 13.9 million tonnes of metallurgical coal across its mine life.