The Coal Trader

Coal News Coal Markets Stanmore Resources

Stanmore Acquires Eagle Downs Coal Project

Stanmore Resources has acquired South32’s 50% stake in the Eagle Downs metallurgical coal project in Queensland for $15 million, increasing its portfolio to six producing mines. This represents a significant discount from the $133 million South32 originally paid for the asset in 2018.

Key Points:

  • Stanmore acquires 50% stake in Eagle Downs from South32 for $15 million.
  • Potential to acquire an additional 30% from Aquila Coal, taking Stanmore’s ownership to 80%.
  • Acquisition expands Stanmore’s portfolio to 13.2 million tonnes per year of saleable metallurgical coal.
  • Eagle Downs has a resource of 1.14 billion tonnes and could produce 4-6 million tonnes per year of high-quality coking coal.
  • Located near existing Stanmore assets and considered “optionality” for future development.

Stanmore’s Strategy:

  • Leverages existing infrastructure and logistics from Poitrel and Isaac Plains mines.
  • Extends mine life beyond Stanmore’s current operations.
  • “Unlocks the full value” of Eagle Downs through technical expertise.

Additional Details:

  • Stanmore to assume operational control and contingent royalty obligations.
  • Eagle Downs previously planned as a 4.5 million tonne per year underground mine.
  • China Baowu exited a take-or-pay contract for Eagle Downs in 2023.

Industry Insights:

  • Analysts view acquisition as opportunistic, providing flexibility for future market cycles.
  • Stanmore doesn’t intend immediate development but secures strategic positioning.


This deal strengthens Stanmore’s presence in Queensland’s premium coal basin and provides potential for future growth. Whether development occurs soon or later, Stanmore has secured a valuable asset with significant coal resources.