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7/9/2018 — Coal, Lignite and CSG/CBM
New mining service contract for Downer

A new mining contractor has been awarded to Australasian operator Downer EDI Ltd (ASX & NZX: DOW).

The company has been awarded a contract by Millmerran Power Partners to continue provision of mining services at the Commodore open cut coal mine in south-east Queensland.

The project is adjacent to the Millmerran Power Station, about 200 kilometres west of Brisbane.

The contract extension is for an additional five-year term and is valued at $A286 million. This will see Downer continue operations at Commodore until the end of August 2024.

Downer has been providing a total mining service at Commodore since 2001 to deliver coal to the Millmerran Power Station. The scope of works includes operating and managing the mine and associated activities, including mine planning and design, drill and blast, overburden removal, coal mining and rehabilitation.

Downer also holds statutory responsibility for the mine site.

Downer’s chief executive Officer Grant Fenn said the contract extension was a clear demonstration of Downer’s ability to deliver value for its customers.

“Downer has a strong record of providing mining services to Millmerran Power Partners and helping it to drive efficiencies across its operations.

The contract builds on Downer’s recent results in the mining, energy and resources and industrial sectors with the award of a $A120 M mining services contract at the CSA mine in New South Wales, a five-year maintenance and support services contract at the Chevron-operated Gorgon and Wheatstone facilities in Western Australia, and a $A660 M underground mining services contract at the Carrapateena copper-gold mine in South Australia.

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Carting ore from the Commodore coal mine. Photo: Australian Mining.