Corrs Chambers Westgarth and Clayton Utz have advised on Stanmore Coal’s agreement with Queensland Coal Corporation to buy mining tenements in Surat Basin.
Corrs advised Stanmore Coal in relation to the agreement, under which Stanmore will swap its Altamondt tenement for QCC’s EPCs 1274 and 1276, which are located near Brookfield and Eurombah, and adjacent to Xstrata’s Wandoan coal project, in the Surat Basin.
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 advised Queensland Coal Corporation.
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.
Corrs said Stanmore believes the tenements are highly prospective, with over 5.6 billion tonnes of JORC resources defined in adjacent areas.
Stanmore’s Managing Director, Nick Jorss, the acquisition creates the potential for a pipeline of Surat projects to build on the 5Mtpa of 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”.