Corrs Chambers Westgarth has advised Stanmore Coal Limited (Stanmore) in relation to its recently announced agreement with Queensland Coal Corporation (QCC).
Under the agreement Stanmore will swap its Altamondt tenement (EPC 2177) for QCC’s EPCs 1274 and 1276, which are located near Brookfield and Eurombah, and adjacent to Xstrata’s Wandoan coal project, in the highly prospective Surat Basin.
The tenements to be acquired by Stanmore Coal cover a combined area of 1,371 km2, which is more than Stanmore’s entire pre-existing tenement area of 1,167 km2.
Stanmore believes the tenements to be highly prospective, with over 5.6 billion tonnes of JORC resources defined in adjacent areas.
Stanmore’s Managing Director, Nick Jorss, stated “The acquisition of EPC’s 1274 & 1276 substantially increases our footprint in the Surat Basin. It creates the potential for a pipeline of Surat projects to build on the 5Mtpa of high quality thermal coal planned from The Range from late 2015. The prospective targets defined on EPC’s 1274 and 1276 support the company’s plans to develop additional, cost competitive, open cut mines that will capitalise on our strong position in respect of planned port and rail infrastructure”.
The Corrs team was led by partner Bruce Adkins, who was supported by senior associate Nathan Zaseybida.
Corrs partner Bruce Adkins said, “This transaction represents a material increase in Stanmore’s coal tenements in the Surat Basin region, and is of strategic significance to Stanmore’s current tenement holding in the Surat given its proximity to the proposed Surat Basin Rail line and Stanmore’s existing tenements.”
Clayton Utz represented QCC.
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