Australia's Stanmore Coal and M Resources have purchased the Millennium and Mavis Downs coal mines in Queensland from Peabody Energy.

The deal was concluded by the joint venture between Stanmore Coal and M Resources, MetRes, Kallanish notes. The companies signed an agreement for an upfront cash consideration of nearly $1 million and a royalty agreement, which is capped at $1m. MetRes will also undertake rehabilitation obligations with an investment of around $19.8m. Incurred rehabilitation costs of $9.67m will be reimbursed by Peabody over a two-year period.

The Millennium and Mavis Downs coal mines are currently in care and maintenance. It is expected to restart mining in July, ramping up to a production rate of 1 million tonnes/year. The mines will produce hard coking coal and other metallurgical coals. The site contains a JORC resource of 37 million tonnes.