After Adani Carmichael mine, Stanmore gets approval to develop Queensland coal project

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In a recent development, the renowned Australian coal producer Stanmore Resources has received the permission for mining leases from the Queensland government, enabling it to begin the work on its Isaac Downs project right away.

Even as the country's coal sector witnessed low-key support, the government decided to issue leases for the project. Due to the mounting pressure on their supporters to do away with fossil fuels, the access was ultimately given to the finance.

Earlier, Adani Group was able to flag off its Carmichael coal mine in the Galilee Basin of Queensland, paving the way for other projects to follow suit. Stanmore Resources is the latest entity to start operating a coal project in the state by getting a go-ahead to begin the work on Isaac Downs mine.

Australia is one of the biggest coal exporters on the planet at this juncture. The country is majorly dependent on its natural resources for the growth of economy and the coal sector plays a pivotal role in supporting the same. Moreover, the quality of Australian coal is far better than the third grade coal procured by the developing countries, especially in Asia.

While Adani Carmichael coal mine is capable of producing 10 million tonne thermal coal per annum, the Isaac Downs project will only produce coking coal, which is predominantly used in the steel-making industry.

According to Stanmore Resources, the coal mining project would be an extension of Isaac Plains. It is set to produce nearly 2.5 million tonnes per annum (mtpa) of coking coal for nearly 10 years. The miner would be spending an estimated $34.62 million for the development of the project.

The company had recently upgraded its loan facility with Singapore's Golden Energy and Resources to operate the project in a comprehensive way. Now, it will be interesting to see if the Queensland government approves more projects to become the hotbed of coal mining in the future.