Spain’s EPSA replacing Golding as mining contractor at Stanmore’s Isaac Downs coal mine in A$564 million five year deal

Posted by Paul Moore on 19th January 2022

The Board of Australian coal mining major Stanmore Resources Ltd has announced that Brisbane-based EPSA Pacific Pty Ltd (EPSA), part of Madrid, Spain headquartered group EPSA Group, has been awarded a five year open-cut mining services agreement (MSA) with a current value A$564 million at its Isaac Downs 35 Mt/y metcoal mine southeast of Moranbah, Queensland. Awarding of this contract Stanmore said marks a major milestone in moving to full production at the Isaac Downs Mine following completion of all regulatory approvals in Q3 2021.

In conjunction with the awarding of the MSA, EPSA will become the statutory Coal Mining Operator (CMO) for the Isaac Plains Complex, and Stanmore will transition to an owner-operator model for the
Coal Handling and Preparation Plant (CHPP). Stanmore said it “acknowledges and thanks Golding, the current CMO under the existing Mining Services Agreement, for their services and successful partnership over the duration of that Mining Services Agreement.”

A termination notice in respect of that Mining Services Agreement has been given to Golding and a carefully managed transition plan will be implemented to ensure business continuity and the minimisation of any disruption, including but not limited to a workforce consultation process focussed on the potential retention of experienced operators.

EPSA Pacific is a wholly owned subsidiary of the large privately owned Spain based EPSA Group, which has operated mining, civil works and earth moving businesses worldwide for over 50 years, including in Australia where the company has been committing significant growth effort. “The new MSA with EPSA will provide operational flexibility allowing Stanmore to capture additional value while navigating market conditions. EPSA brings brand new equipment as well as a highly experienced management team and state of the art operations and maintenance control systems.” Other mining contracts awarded to EPSA in recent years include from Perseus Mining to develop its Yaouré gold mine in Côte d’Ivoire, West Africa.