The contract term can be extended for another two-years at Stanmore's discretion.

Mining activities under the contract are due to begin in the second quarter of 2022.

In conjunction with the awarding of the MSA, EPSA will become the statutory coal mining operator for the Isaac Plains Complex, and Stanmore will transition to an owner-operator model for the coal handling and preparation plant.

Stanmore said awarding of this contract marked a major milestone in moving to full production at the Isaac Downs mine following completion of all regulatory approvals in Q3, 2021.

"EPSA brings brand new equipment as well as a highly experienced management team and state of the art operations and maintenance control systems," it said.

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.

Stanmore said the EPSA MSA would provide operational flexibility allowing Stanmore to capture additional value while navigating market conditions.

"Stanmore 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," the company said.

"A termination notice in respect of that MSA 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."

Golding is a subsidiary of NRW Holdings.