Australia's metallurgical coal producer Stanmore Resources is expanding its coking coal footprint in the Bowen Basin through a project acquisition strategy.

Stanmore has reached an agreement with South African miner Exxaro Resources to acquire the Moranbah South coking coal project in Queensland, Australia, for $105 million, according to media reports.

The acquisition is expected to be completed before the end of Q4 2026, subject to necessary regulatory approvals. The deal is also conditional on Exxaro first completing its acquisition of Anglo American's 50% stake in the project.

Exxaro exercised its pre-emptive right to acquire Anglo American's 50% interest in Moranbah South after Anglo American agreed in May 2026 to sell its remaining Australian metallurgical coal assets to Dhilmar.

For Exxaro, the sale of Moranbah South aligns with its diversification strategy of reducing reliance on thermal and metallurgical coal markets and focusing more on its domestic South African market.

For Stanmore, the acquisition is seen as a significant milestone that will expand its resource base and contribute to its future growth vision. The acquisition will also enable resource integration and infrastructure synergies.

Following the acquisition, Stanmore will integrate Moranbah South with its two adjacent projects in the Bowen Basin — Eagle Downs and Isaac Downs Extension.

Moranbah South, in early-stage development, holds substantial resources expected to contain high-quality hard coking coal. Future mining of Moranbah South resources could utilize infrastructure from the Eagle Downs project.

The acquisition will also help mitigate potential financial burdens from a previous agreement. Stanmore need to pay up to $60 million in deferred and contingent consideration under a Designated Area Agreement signed in 2024, which allows the company to access to the Isaac Downs expansion through Moranbah South tenements.

It is reported that Stanmore's key mining assets in Queensland include the Poitrel, South Walker Creek and Isaac Plains operations. South Walker Creek produces up to 7 Mtpa of high-quality low-volatile PCI coal, while Poitrel has a capacity of over 4 Mtpa, with about 65% hard coking coal and 35% PCI coal in its product mix.

In its latest half-year financial report, Stanmore's coal sales revenue rose 13% year on year to $978 million in H1 of 2026, supported by firmer seaborne prices driven by supply disruptions. Coal output was steady at 6.5 million tonnes.