The Coal Trader

Coal Mining Peabody Energy

Stanmore Sells Part of Wards Well to Peabody for $135.5 Million

Stanmore Resources has struck a deal with Peabody Energy, selling a portion of its Wards Well metallurgical coal tenement in Queensland for a total potential value of $135.5 million. This includes $125 million cash upfront, a $10.5 million port and rail cost rebate, and a capped royalty stream of up to $200 million.

Key Points:

  • Stanmore sells southern portion of Wards Well to Peabody, adjacent to their North Goonyella mine.
  • Stanmore retains Lancewood tenement and northern portion of Wards Well, totalling 1.31 billion tonnes of coal resources.
  • Deal minimizes upfront capital needed for developing Stanmore’s retained assets.
  • Capped royalty stream based on first 120 million tonnes of mined coal from Wards Well, potentially reaching $200 million.
  • Stanmore operates four met coal mines in Queensland and Peabody has significant assets in the region.

Benefits for Stanmore:

  • Receives significant upfront cash injection and reduces development costs.
  • Potential for additional revenue through capped royalty stream.
  • Opens door for future collaboration opportunities with Peabody.

For Peabody:

  • Acquires strategic coal resource adjacent to existing operations.
  • Potential cost savings by utilizing existing infrastructure.
  • Expands presence in Queensland’s Bowen Basin.


This deal allows Stanmore to monetize a less accessible portion of their assets while focusing on developing core holdings. Peabody acquires valuable resources and expands its portfolio, potentially leading to further collaboration in the future.

Additional Notes:

  • Wards Well is located on the Newlands to Abbot Point railway, while Peabody’s North Goonyella mine uses Dalrymple Bay Coal Terminal.
  • Stanmore operates Isaac Plains, South Walker Creek, Poitrel, and Millennium-Mavis Downs mines.
  • Peabody also has interests in the Coppabella-Moorvale joint venture and Middlemount mine.