April 8, 2024 - Australian coal miner Stanmore Resources is taking full control of the Eagle Downs assets, in the Bowen basin of Queensland.

The company entered into an agreement with China Baowu Steel Group subsidiary Aquila to acquire the remaining 50% stake in Eagle Downs and 100% of the Eagle Downs South tenements.

In February, Stanmore announced that it would buy South32’s interest in Eagle Downs. At the time, the company said it was in discussions to acquire part of Aquila’s interest in Eagle Downs South.

For Eagle Downs, Stanmore will pay Aquila $15-million in cash upon completion, $20-million once the first 100 000 t of coal is mined from longwall mining and a capped royalty of up to $150-million in future linked to average coal index price thresholds.

For Eagle Downs South, Stanmore will pay A$12-million in total.

“In acquiring 100% of the Eagle Downs assets Stanmore has full control over the development plan and is able to streamline management and fully leverage its strong technical capabilities, as well as unique infrastructure and logistics portfolio, to unlock the value of the asset to its full extent.

“Stanmore will seek to optimise the development plan and take a capital-efficient approach to any future development decision,” said CEO and executive director Marcelos Matos.

Stanmore expects to complete the Aquila transaction in the second half of the year. The South32 transaction will be completed this quarter.