Stanmore Resources has agreed to acquire Moranbah South tenements in Queensland’s Bowen Basin from Exxaro Resources for $US105 million ($145 million), adding a substantial metallurgical coal resource base to its development portfolio.
The acquisition covers 100 per cent of the Moranbah South tenements, which are immediately adjacent to Stanmore’s Eagle Downs and Isaac Downs Extension projects.
The Moranbah South tenements contain 724 million tonnes (Mt) of measured and indicated coal resources in the Goonyella Middle Seam, with the resource expected to be premium hard coking coal quality.
Stanmore said the resources could potentially be accessed through existing mine infrastructure at Eagle Downs if that project proceeds, subject to further technical studies, feasibility assessments and regulatory approvals.
The transaction is also expected to improve the economics of Stanmore’s Isaac Downs Extension by removing up to $83 million in deferred and contingent consideration payments associated with the 2024 Designated Area Agreement.
Stanmore chief executive officer and executive director Marcelo Matos said the acquisition would strengthen the company’s development pipeline.
“The acquisition of the Moranbah South tenements will represent a significant milestone for Stanmore’s development portfolio, increasing our resource base and strengthening the platform to deliver on our future growth aspirations,” Matos said in a statement.
The transaction remains conditional on Exxaro first completing its acquisition of Anglo American’s 50 per cent interest in the Moranbah South joint venture.
Exxaro has exercised its pre-emptive rights following the sale of Anglo American’s Australian coal assets to Dhilmar, which would give Exxaro full ownership of the Moranbah South tenements before the joint venture terminates.
Stanmore expects the transaction to complete before the end of the fourth quarter of 2026, subject to the completion of Exxaro’s acquisition and regulatory approvals, including Foreign Investment Review Board, Australian Competition and Consumer Commission (ACCC) and indicative ministerial approval for the transfer of the tenements.
Stanmore will fund the acquisition from existing cash balances and liquidity, with no shareholder approval required.
Moranbah South comprises two mineral development licences and an exploration permit for coal covering an underground project. Stanmore said its location alongside Eagle Downs and the Isaac Downs Extension provides potential synergies between the projects.
Following completion, Stanmore intends to commission an independent resource report for the Moranbah South assets and provide an update once the review is complete.