M Resources Pty Ltd - Mining Outlook - issue 1

TRADING, CONSULTING AND INVESTING IN THE METALLURGICAL COAL INDUSTRY

THE METALLURGICAL MARKETEERS

M Resources Pty Ltd. has leveraged its industry expertise and global network to become a leader in coal trading, marketing and consulting for metallurgical coal products. Founder and President, Matt Latimore digs deep into the company today

Writer: Phoebe Harper | Project Manager: Eddie Clinton

As a landmass, Australia boasts some of the largest coal resources in the world. Although an industrial and economic cornerstone, in the context of the ongoing climate crisis and exploration of alternative energy sources, coal has become a contentious issue.

Further to the shift in the global perception of coal, major geopolitical events continue to make seismic waves across the global market. This began with the demand impacts of the COVID-19 pandemic, followed by China’s imposition of a ban on

Australian coal in 2020 and most recently, the trade sanctions resulting from Russia’s invasion of Ukraine.

Regardless, for Matt Latimore, Founder and President of Brisbanebased mining, marketing, trading and investment company, M Resources Pty Ltd. (M Resources), the metallurgical coal industry is currently defined by both optimism and opportunity.

“In recent times, the coal trading industry has been an extremely exciting place,” he says. “Russia was a major supplier of metallurgical coal

to the international market, and it has been a very important role for Australia to step up and fulfil supply to our global trading partners.”

With Australia as the largest supplier of coal to the international seaborne market, M Resources is well-positioned to oversee that this demand is met, as the company markets coal from every port across Queensland, including Gladstone, the Dalrymple Bay Coal Terminal in Mackay, and Abbot Point - home to the deepwater coal port of the North Queensland Export Terminal.

“Of course, there has been a lot of volatility to deal with, but the overall demand and mid-term outlook for metallurgical coal is extremely encouraging,” observes Latimore.

EXPERTS IN THE MARKET

With a broad remit of services, encompassing mining, marketing, trading and investment, M Resources focuses its expertise primarily on the steelmaking raw materials of metallurgical coalcoking, pulverised coal injection (PCI), iron ore and thermal coal. For almost a decade, M Resources has also handled exports of mineral sands including rutile and zircon.

In addition, the company comprises two complementary subsidiaries with MetRes (a 50-50 joint venture (JV)

between M Resources and Stanmore Resources), and M Mining - the operator of the Millennium Mine in Queensland’s upper Bowen Basin.

“We also have mining operations in Queensland near Moranbah,” adds Latimore.

Although its head offices are in Brisbane, M Resources is bolstered by a vast global network. The company’s footprint extends to regional offices in Singapore, the UK, North America and South America, and its expansion shows no sign of slowing. Indeed, 2023 is set to bring two further offices in both Japan and India.

“We have invested heavily in our global network and have strong customer relationships across the world,” shares Latimore.

M RESOURCES – AT A GLANCE

SERVICES:

• Market information and strategy

• Market development

• Technical marketing consulting – coal characterisation, testing and value in use analysis

• Blending

• Specification and development

• Sourcing

• Resource evaluation

• Trading – metallurgical and thermal coal

M Resources has several existing marketing agreements in place including:

• Exclusive marketing for Stanmore Coal

• Exclusive marketing for Bowen Coking Coal

• Exclusive metallurgical coal marketing for Arcem (Mozambique)

• Exclusive marketing and sales for Allegiance Coal New Elk Mine

• Marketing for Magnum Iron Ore and Iron value-add products

• Marketing for AVF Energy hydrogen products

Cartledge Mining and Geotechnics (CM&G)

With an approach grounded in geology and reinforced by technical excellence, Cartledge Mining and Geotechnics (CM&G) delivers practical and innovative solutions to mining companies around the world. Based in Australia, the geotechnical consultancy is developing a global reputation of excellence through its practical yet innovative approach to mining solutions from exploration to mine closure.

CM&G Principal Tim Cartledge said focusing solely on the mining industry allows the team of geotechnical practitioners to develop a deeper understanding of the complexities across the lifecycle of mining projects for all commodity types.

“As mining specialists, the CM&G team have vast operational expertise backed by a high standard of technical knowledge in rock engineering, which means we deliver practical solutions that will keep a mine operating as efficiently and as safely as possible,” he said.

“We work in collaboration with our clients. This partnership means that the problems a mine experiences are our problems to solve.

“When challenges arise, we are there working alongside our clients as a single team to achieve the best possible outcome. We don’t hold ourselves separate from the problems and work hard to maintain safe production.”

Collectively the CM&G team has worked on projects across Great Britain, Europe, North and South America, Africa, Asia and the Pacific, establishing a proven track record for delivering solutions that work for their clients.

This experience has given CM&G’s geotechnical engineers and engineering geologists extensive hands-on experience in identifying ground-related hazards and opportunities to optimise resource extraction value.

Find out more about working with CM&G at cmandg.com.au

On top of this expansive geographic reach and portfolio of expertise, it is the people behind M Resources that are a crucial differentiator in maintaining an astute perspective on the market and responding appropriately to clients’ needs.

“We understand the markets that we cover extremely well,” he continues. “Not only this, but we understand logistics, and the technical aspects of the product we market.

“We have been building the right people around our company to be able to take advantage of identifying good assets and the right kind of companies that we want to be involved in.”

Latimore’s people philosophy is easily summed up – his clear focus is on expertise and excellence, aimed at further increasing customer assurance and confidence in the M brand.

Such entities are integrated into M Resources’ robust customer

networks, with the company adding value to each operation through the application of its unsurpassed market knowledge and industry experience.

“Building on that, we also have a team of mining professionals, meaning that when we partner with mining companies, we already have a solid understanding of the business, and so can market and represent them with a strong background in both the industry and the product,” Latimore explains.

With people as the company’s differentiating asset, M Resources continues to grow its teams, further expanding its Business Development department, and enhancing its logistics and technical capabilities. The company believes it is differentiated by its team, and its ‘go to market’ delivery capability.

DRIVING DEVELOPMENTS

Turning to ongoing projects in development, M Resources and

Atlantic Digital

Atlantic Digital is a leading, Australian owned IT specialist providing expertise in the design, support and maintenance of IT networks throughout Australia and New Zealand.

With over 25 years’ experience in the mining and resources industry, we offer you a reliable partnership that can be trusted to deliver your end-toend technology solutions.

Our company foundations are firmly within the mining and resources sector where we continue to provide innovative solutions using local field personnel. In 2022, we worked closely with M Mining to deliver a rapid deployment of server infrastructure and field communication networks to the Millennium Mine and continue to support the development of their underground operations.

As with M Mining, our experience has been leveraged in modernising operations for mining companies including real-time data flow, unification of IT systems, upgrading process control and automation networks that are used across all critical systems.

Our methodology is flexible and based on the needs of our customers. The breadth of our capability in mining sector IT systems and user support, network engineering, cloud integration, procurement and licensing and cyber security is unparalleled in the industry.

We value strategic partnerships to drive innovation, deliver value, simplify IT platforms and reduce IT overhead in the business. Through the provision of reliable, quality services, our reputation as a trusted partner has grown across the resources sector. Contact us to see how we can deliver value to your business.

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“WITH THE ENERGY CRISIS AND SUPPLY RESTRICTIONS FROM RUSSIA, WE ARE WORKING HARD ON INCREMENTAL EXPANSION TO MEET CUSTOMER NEEDS”

– MATT LATIMORE, FOUNDER AND PRESIDENT, M RESOURCES TRADING PTY LTD.

CELEBRATING 25 YEARS PROVIDING CORPORATE & FIELD IT SERIVCES TO THE MINING INDUSTRY

Our comprehensive understanding and experience in the mining sector ensures we can support and create value across mining process, applications, methods and challenges. We have locally employed field based staff throughout the Bowen Basin and Hunter Valley to provide an on-site personal approach to IT support.

• Managed IT Services

• Mining Applications & Technology Services

• Technology Roadmap & Planning

• Server Infrastructure & Backup

• Network Engineering

• Field Communications & Design

• Cloud Solutions & Integration

• Procurement & Licensing

• Understanding of Mining Systems & Methods

• Security Consulting

• Vendor Access Solutions

• Local, Field Based Staff

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We can deliver your entire IT deparment or be part of the team.

its related entities hold strategic investments across some major forces of Australian mining. This includes a five percent equity stake in Stanmore Resources, which owns South Walker Creek, Poitrel and Isaac Plains mines and a 10 percent level of investment in Bowen Coking Coal, where M Resources both markets the coal and is a major shareholder. The latter commenced production from the Bluff Mine just last year, with the first export shipment taking place in June 2022 and Broadmeadow East Mine in January 2023.

In addition, M Mining holds 50 percent investment in the MetRes Millennium Mine and is both JV Manager and Operator. Millennium became the first mine to be operated by M Mining after it was purchased by Peabody in April 2021.

Within just six weeks of completing the mine acquisition, M Resources has been awarded AUD$460 million in contracts for auger, open-cut and underground mining at Millennium.

MINING OUTLOOK: COULD YOU EXPAND ON M RESOURCES’ UPCOMING DEVELOPMENTS ON THE DARTBROOK MINE WITH AUSTRALIAN PACIFIC COAL?

MATT LATIMORE, PRESIDENT AND FOUNDER: “This will be the first investment in NSW and hopefully a beachhead for M Resources’ investments there. We recently concluded 20 percent project-level equity at the Dartbrook Mine in NSW with the Australian-listed entity, Australia Pacific Coal. As owners of the project, we’re progressing a JV with that company to restart those operations and undertake the marketing. We expect that project to be up and running in the final quarter of 2023.”

Its first shipment was exported within five months of taking ownership of the mine, which was in care and maintenance with only three full-time staff.

“The plan was to extract the full economic value from the resource via auger and open-cut mining in a new pit while progressing the underground mine development with our partners PIMS Group from Mackay,” outlines Latimore.

Throughout 2022, M Resources continued to make good progress with its underground development at Millennium and mined approximately 600 thousand tonnes (kt) by open-cut.

“We have been exporting coal out of that operation for over 12 months now, and it is a fantastic achievement that fits with both our underground mining business and our coal marketing business.”

2022 proved to be a major year for the company, coinciding with Stanmore Resources’ acquisition of

MCC Group

MCC Group is dedicated to providing an honest, reliable and quality service to our clients. Our mission is to provide our employees with a safe and supportive work environment, where they each, individually and collectively, can dedicate themselves to providing our clients with outstanding workmanship, extraordinary service, and professional integrity.

Adam Merrick (company director) established Merrick Construction & Concrete in 2017. Within one year, the business rapidly grew into a successful company to address a growing need for proven hands-on construction, and project management of complex and major mining infrastructure including maintenance, smaller commercial, industrial projects, concrete, and civil works. In 2020, MCC Group Pty Ltd was created and took over from Merrick Construction & Concrete Pty Ltd.

Today, MCC Group Pty Ltd has a strong presence in the Australian mining and civil industries. The significant growth is due to our recognised expertise on large projects across multiple sectors.

Our services:

• Production mining

• Fixed and mobile plant maintenance

• Mine site cleaning

• Commercial and industrial construction and maintenance

• Major site access works, boom gate, culverts, intersections, and roadways

• Switchyard construction

• Ventilation fan and underground portal construction including underground concrete works

• All plumbing services

• Coal plant maintenance

• General building maintenance

• Camp maintenance

• Landscaping services

• Roadway slashing

• Polywelding

• Pit-dewatering

MCC GROUP IS A LOCALLY ESTABLISHED CONSTRUCTION AND MAINTENANCE COMPANY SERVICING THE CENTRAL HIGHLANDS REGION.

MCC GROUP

PO BOX 949, Emerald, QLD, Australia

admin@mcc.group

www.mcc.group

the BHP Mitsui coal assets at South Walker Creek, Poitrel, and Wards Well.

“This was a tremendous expansion with very good quality large-scale, low-cost mines which substantially increased production to over 10 million tonnes per annum,” Latimore tells us.

Most recently, a major development is on the horizon for M Resources with the company’s agreement to take 20 percent project interest in the Dartbrook Mine in New South Wales (NSW) with Australian Pacific Coal.

RESOURCING THE FUTURE

With a wealth of projects currently either underway or firmly in the pipeline, M Resources is stepping up to meet the demand expected of Australian coal, evolving and expanding in line with the global market.

“I am expecting further expansions in Queensland with all our affiliated companies. With the energy crisis and supply restrictions from Russia, we are working hard on incremental expansion to meet customer needs,” surmises Latimore.

Continually growing its investments

in mining and infrastructure, across both coal and other commodities, M Resources will direct its investment strategy towards assets and businesses where it can best add value by marketing the products generated. However, for the immediate future, Latimore’s focus for M Resources is crystal clear.

“For the year ahead, we will focus on growing our mining footprint through the Millennium operations and Dartbrook, expanding with our partners Stanmore Resources and Bowen, and increasing our global marketing network to thoroughly service the needs of our customers, partners and stakeholders.”

Drawing to a close, Latimore returns to the predictably unpredictable nature of the global trading industry as something that all companies will have to take in their stride for the years to come.

“Volatility is something that the industry is going to have to deal with even more in the future, but overall, the demand profile for metallurgical coal is strong.”

Indeed, as the Indian Government endeavours to meet its target of 300

Coal Augering Services

This is the fourth time that Coal Augering Services has recovered previously inaccessible coal reserves at Mavis Downs and Millennium since 2007.

Augering has enabled a rapid re-start for M Mining, providing start-up cashflows and supporting the transition to underground mining.

Bret Leisemann, CAS Managing Director said, “we are delighted to support M Mining in successfully re-starting the mine, proud of our achievement of zero harm since starting last September, and we look forward to assisting them again as one of Queensland’s newest producers in the metallurgical coal industry.”

www.coalaugering.com

million tonnes of steel production by 2030, the global market will need to rise to meet that challenge. With Australia currently exporting between 180-185 million tonnes of metallurgical coal a year, the demand is there to be seized.

“There are not many good quality large operations coming into play in the metallurgical coal space currently, so that creates a window for entrepreneurial companies to get involved and take advantage of that opportunity,” he concludes.

About us

Coal Augering Services offers a complete contract auger mining service, employing the highest capacity equipment and most experienced auger mining personnel in the world.

Auger mining is employed to increase reserves, accessing coal lying beyond the economic reach of conventional stripping operations at a low cost/tonne to maximise profitability and facilitate economic mine closure outcomes.

Coal Augering Services’ new generation of coal recovery augers are capable of drilling holes on angles of up to 20 degrees, with diameters ranging from 0.9m up to 1.9m, to a depth of more than 200m and augering up to 2,400 tonnes in a 12-hour operating shift. With three units available in the Bowen Basin, and one unit in Kalimantan, why not maximise your coal recovery (and profits) with highwall auger mining.

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