Attendees at the Bowen Basin Mining Club’s March luncheon heard a frank assessment of where the met coal market stands, and why Stanmore Resources intends to stay in it for the long term. Damian Zagel, Chief Development Officer, walked the room through a record-breaking 2025 for the company, its forward operational strategy, and the policy headwinds that continue to test Queensland’s competitiveness as a place to invest.
A record year, delivered safely
Stanmore’s portfolio produced 14 million tonnes of saleable coal in 2025, a new company record and a 25% increase on the combined output of its operating assets prior to the BMC acquisition in 2022. The result was achieved despite the five-year average annual rainfall arriving in the first four months of the year.
South Walker Creek delivered record performance across many key physical metrics, including dragline stripping, ROM coal and saleable production. The CHPP upgrade, expanding capacity from 8 to 9.2 million tonnes, reached above nameplate capacity, a key enabler of the site’s growth. Poitrel set all-time production records for ROM production, saleable output and sales volumes, driven by the Ramp-10 North development and productivity gains on its 600-tonne class prestrip fleet. Isaac Plains had a challenging year, with a strong second-half recovery bringing delivery to the lower end of revised guidance.
Safety results kept pace with production performance. Stanmore’s Serious Accident Frequency Rate remained below the industry average for open-cut miners throughout the year, and recordable injuries fell 57% year-on-year.
“A strong safety result, record tonnes and stable costs: that’s been a credit to the operations teams,” Zagel told the audience.
Culture as competitive advantage
Asked what Stanmore is doing differently in a market defined by lower coal prices and rising costs, Zagel pointed to culture before anything else.
“Culture eats strategy for breakfast, and that’s hard when I’m the lead for strategy,” he said. “Just by enabling people through our operating principles, creating clear expectations – that’s the best competitive advantage we can create, because we’re in control of it.”
Stanmore’s operating principles prioritise simple practical solutions, accountability close to the work, and minimal bureaucracy. Zagel pointed to low leadership turnover as evidence the approach is working, noting that contractors and partners across the industry regularly comment on how the company operates.
Where operations are heading
At South Walker Creek, the focus shifts to higher-margin coal now accessible through the MRA2C investment. Pit preparation activities are targeting ROM coal at an average 8:1 strip ratio, and the company has introduced 31 new trucks and five new excavators to support pre-stripping. A semi-autonomous dozer, keeping operators off coal stockpiles, was also deployed at the site last year delivering on its objectives.
Poitrel’s five-year saleable production growth has reached 42%, with consecutive records in 2024 and 2025. As mining moves north and volumes normalise, the site will hold its focus on productivity and efficiency for the remainder of the mine life.
At Isaac Plains, production is being intentionally reduced from 2.4 to 1.6 million tonnes, with operations scaled back to a single truck-shovel fleet to minimise unit costs and maximise cash results ahead of the transition to the Isaac Downs Extension.
The Isaac Downs Extension remains Stanmore’s highest near-term priority. The project would deliver a 15-plus-year mine life, targeting up to 4.5 million tonnes per annum at an attractive strip ratio, and sustain employment for nearly 500 people in the Bowen Basin. The Environmental Impact Statement is expected to be submitted mid-2026, with regulatory approvals targeted by late 2027.
“The Isaac Downs Extension provides crucial life extension and continuous employment for our community,” Zagel said. “We’re focused on optimising the mine plan and working through the stakeholder agreements to get this across the line.”
Community investment and social performance
Stanmore spent $132 million with local suppliers in 2025, with 70% of its workforce living locally in the region. Royalties paid to Queensland totalled $300 million for the year, bringing the total since the 2022 royalty regime change to $2.1 billion.
“Although we don’t support the current royalty regime, we do acknowledge it’s an investment back into the state,” Zagel said. “We will continue to champion the role of mining in delivering benefits to the economy and the communities in which we operate.”
The company’s Indigenous Trainee Program took out Best Company Indigenous Initiative at the QRC Indigenous Awards in 2025, with Indigenous employment sitting at approximately 3.2% across the workforce. The Community Grants Program awarded more than $280,000 across 65 local community groups during the year.
Market outlook
Asked about the current downturn and when conditions might improve, Zagel was measured. Based on historical cycles of seven to ten years, with the last peak in 2022, a recovery may still be some years away. He pointed to Middle East instability as a significant variable, with potential disruptions to diesel supply creating both risks and strategic opportunities for coal-producing nations.
On Queensland’s competitive position, he was direct. “New South Wales played their hand” by ruling out new coal mine approvals, placing Queensland in a unique position to fill that gap – but only if policy settings allow it.
“We’ve got the world’s highest royalties here, and that really hurts. It’s not just royalties – it’s the safeguard mechanism, Same Job Same Pay, diesel prices. It is challenging,” he said. “But Stanmore sees a future in metallurgical coal, and we will take the long game on that. We’re a Queensland-based, Queensland-focused company, and that’s where we’ll continue to play.”
The next Bowen Basin Mining Club event is on May 28 in Mackay. For event details and ticket information, visit www.bbminingclub.com.