Stanmore Coal inks Belview coking coal funding, marketing deal
Australia’s Stanmore Coal has secured exploration funding for its Belview coking coal project in Queensland, the coking coal junior said on Monday December 30.
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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.