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Stanmore will receive A$680,000 ($604,285) – from Japan's diversified industrial conglomerate Taiheiyo Corp and Japanese government body, the Japan Oil, Gas &Metals National Corp – to undertake drilling and core sample analysis at Belview, the miner said.

Under the funding arrangement, Taiheiyo is entitled to purchase up to a total of 100,000 tonnes of coal over the first three-year period of Belview’s operation at a A$2 ($1.77) per tonne discount to the benchmark Japanese settlement price, concluded between major Japanese mills and BHP Billiton.

Stanmore expects to produce a hard coking coal and secondary pulverised coal injection product from the project, which is located in Queensland’s coal-rich Bowen Basin region.

Drilling associated with the agreement has commenced and is expected to be concluded in the first quarter of 2014, Stanmore said.