Stanmore Resources has announced the cessation of operations at the Mavis Underground coal project, part of the Millennium Complex in Queensland, Australia.
The closure process is due to be initiated from the end of June 2024 and concluded by the end of the third quarter (Q3) of 2024.
The company’s strategic review concluded that the Mavis Underground project is uneconomical under the current market conditions and coal prices.
The project’s challenging ramp-up, short mine life and lower production volumes have resulted in higher costs, prompting the company’s decision to cease operations.
Production at the Mavis Underground mine is expected to stop by the end of this month, followed by the closure and sealing of the pit.
Stanmore said it has also commenced discussions with the mining services contractor PIMS, alongside consultations with the workforce.
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By GlobalData
By the end of Q3 2024, the entire Millennium Complex is expected to enter a steady-state minimum expenditure care and maintenance regime.
Despite the closure of Mavis Underground coal project, the potential development of the Millennium underground mine remains a possibility, subject to capital allocation and prioritisation strategy, the company stated.
In a press statement, Stanmore said: “We do not expect consolidated guidance metrics provided in our market announcements in February to be impacted, as our core operations at South Walker Creek, Poitrel and the Isaac Plains complex are expected to continue to perform strongly this year.”
In April 2024, Stanmore agreed to acquire the remaining 50% stake in the Eagle Downs metallurgical coal project and a 100% interest in the Eagle Downs South tenements in Queensland from Aquila.
