Stanmore Coal has cushioned itself from the blow of plunging thermal coal prices by concentrating its operations on metallurgical coal.
Stanmore chairman Dwi Suseno said in the company’s annual report 2020 metallurgical coal had been relatively less affected by these market dynamics than thermal coal.
While the COVID-19 pandemic has affected Stanmore’s realised prices from coal sales, but a majority of the company’s coal was contracted to term customers.
“(This) has underpinned relatively stable prices compared with prevailing market prices,” Suseno said.
“The company expects realised prices on coal sales to remain stable, in line with industry forecasts.”
Stanmore achieved an average coal sale price of $159.5/tonne in the 2020 financial year, down from $173.8/tonne in the previous financial year. However, coal sales for the
full year remained in line with FY19, totalling 2.29 million tonnes.
Stanmore is committed to developing its Isaac Downs metallurgical coal project in Queensland, which will operate as a satellite open-cut mine that feeds run-of-mine coal to the company’s processing plant.
Its mineral resources had been updated to 36.2 million tonnes, with 24.7 million tonnes now classified as a measured resource.
“Extending the coal sources to feed the Isaac Plains operating infrastructure is an important part of the company’s strategy,” Stanmore chief executive Marcelo Matos said.
“During the year the company progressed environmental approvals for an extension to the current Isaac Plains East operations within the existing granted mining leases.
“The extension will allow existing operations to bridge any potential risk of production continuity relatively to the planned commencement of the Isaac Downs project, when regulatory approvals are received.”
Stanmore is developing infrastructure designs for the Isaac Downs project, which is on track to receive approvals next year.