Stanmore has announced that it will cease operations at its Mavis Underground project, with the transition expected to be complete by the end of Q3 2024.
The company said the decision follows a strategic review that determined that, given its relatively short mine life, the Mavis Underground project has proven to be uneconomic under current market conditions and coal prices. The company also said that the Mavis Underground site had comparatively higher costs driven, among other reasons, by the challenging ramp-up and lower production volumes achieved to date.
Stanmore said that discussions with the mining services contractor PIMS and associated consultation with the workforce have started, with production operations at the Mavis Underground ceasing at the end of June 2024. The closure and sealing of the Mavis Underground pit is expected to follow, with the Millennium Complex expected to reach steady state minimum expenditure care and maintenance regime by the end of Q3 2024.
Stanmore also said that the potential Millennium underground development option is unaffected by this decision, however it will be subject to the company’s capital allocation and prioritisation strategy and to the same internal investment criteria as other capital project options within the Stanmore portfolio.
Stanmore said it does not expect consolidated guidance metrics to be impacted as the company’s core operations at South Walker Creek, Poitrel and the Isaac Plains complex are expected to continue to perform strongly throughout the rest of 2024.
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