Mastermyne Group Limited says it has executed a contract for contract mining services with GEAR M Illawarra Met Coal Pty Ltd (GM3) at its recently acquired Appin mine in the Illawarra region of New South Wales.

GM3 is a partnership between Golden Energy and Resources (GEAR) and M Resources.

The contract has an initial term of three years plus a two-year extension option and encompasses approximately 200 roles at Appin mine. The contract is anticipated to generate revenues for Mastermyne of approximately A$180 million ($113 million) across the initial three-year contract term.

Last year, South32 entered into a binding agreement to sell Illawarra Metallurgical Coal to an entity owned by GEAR and M Resources for upfront and deferred cash consideration of $1.3 billion plus contingent price-linked consideration of up to $350 million.

Illawarra Metallurgical Coal produces high-quality metallurgical coal, and has underground mines at Appin and Dendrobium, which produce premium-quality, hard coking coal for steelmaking. In South32’s 2023 financial year, it produced almost 5.5 Mt of this product.

Jeff Whiteman, Mastermyne CEO & Managing Director, said: “This project signifies Mastermyne’s return to the Illawarra region where we have a proven track record. We see this project as an
important milestone in our growth strategy and look forward to building our relationship with GM3 over the coming months and years.”