After the exit of a Chinese backer, Stanmore Coal has acquired full ownership of Queensland's Eagle Downs mine.

Stanmore Coal has acquired a 100 per cent stake in the undeveloped Eagle Downs coking coal mine, following a deal with Chinese state-owned steel maker Baowu.

Stanmore will pay $24.7 million upfront for Baowu’s 50 per cent interest in the mine (plus an additional nearby tenement), with potential additional payments up to $273 million, contingent on meeting specific coal production and price targets.

Stanmore says it is part of its strategic expansion, which included its acquisition of the other half of Eagle Downs from South32 for at least $22.7 million - a deal anticipated to close before June and possibly reaching $205 million in value depending on production and pricing milestones.

The latest sale came in a bustling week in Queensland's coal sector, which also saw Whitehaven Coal's acquisition of BHP’s Daunia and Blackwater mines, and Pembroke Resources initiating production at the new Olive Downs mine.

Baowu’s divestment from Eagle Downs follows a challenging period since its $1.42 billion acquisition of Aquila Resources in 2014, which has yet to see coal or iron ore shipments from the acquired assets. 

Baowu also incurred substantial costs related to unused port capacities, including a near $300 million settlement last year to alleviate future obligations, facilitating this sale.