Tag Archives: Appin

Mastermyne outbye services contract extended at South32’s Illawarra coal mine

Mastermyne Group says it has won a short-term extension to its existing contract with South32 at the Illawarra metallurgical coal operation in New South Wales, Australia.

The execution of the new contract will see the ASX-listed contractor continue to provide outbye services at the operation, part of the Appin colliery, until June 30, 2020. This extension closely aligns Mastermyne’s outbye services with the roadway development contract also operating in parallel at the mine, it said.

The scope of the agreement provides for a range of services managing outbye processes and supplementary labour in the Appin colliery longwall area.

The contract extension, expected to generate revenue of around A$17 million ($11.6 million) over the seven-month period, also allows the company to use this time to finalise an Enterprise Agreement with its workforce, it said.

South32 completed two longwall moves in the June 2019 quarter and plans to produce 7 Mt of metallurgical coal in the year ending June 30, 2020. This is up from 6.6 Mt in the previous 12-month period. More longwall moves have been scheduled for the current quarter and the March 2020 quarter as South32 looks to support the operation’s return to a three longwall configuration from the June 2020 quarter.

Mastermyne CEO, Tony Caruso, said: “We have worked closely with South32 for some time now, and putting this extension in place means both organisations are able to plan and get set for the longer term requirements at the mine.

“The company has provided contracting services to the Illawarra metallurgical coal operations for over 15 years now and we look forward to assisting South32 with their next stage of underground growth at the Appin colliery.”

South32 address Illawarra road safety with Linfox Logistics deal

South32’s Illawarra Metallurgical Coal says it has contracted Linfox Logistics in a new six-year partnership that will improve road safety in the Illawarra of New South Wales, Australia.

In what South32 says is an Australian first, Linfox has custom-built the innovative “Lin-Double” truck to address the unique challenges of coal haulage in the region. The partnership will see 25 of these new trucks join the company’s fleet.

When in full use, the “Lin-Double” will reduce truck movements on public roads by almost 40,000 trips per year, according to South32, significantly improving local traffic flow and reducing the burden on public roads.

“The trucks feature industry-leading technology including crawler transmission and a speed limiter with GPS monitoring to safely navigate the steep descent down Mount Ousley [Road] while greatly reducing the risk of brake fade to increase driver and public safety,” South32 said.

Illawarra Metallurgical Coal has underground mines at Appin and Dendrobium producing high-quality metallurgical coal used for steelmaking. As a by-product, it also supplies small amounts of coal for energy. All of this is processed at its plants at West Cliff and Dendrobium, before being transported by road and rail down to Port Kembla in Wollongong.

Illawarra Metallurgical Coal, General Manager Mining Services, Andy Hyslop, said the investment was a demonstration of South32’s commitment to safety and innovation and would deliver benefits for both the community and the company.

“We are proud to be bringing safer trucks to the Illawarra while reducing the number of trucks on the road by around 20% every year,” he said.

The company concluded: “South32 values the communities that support its operations, and with state-of-the-art trucks and improved driver training and management systems, this partnership will contribute to the region’s sustainability and liveability for years to come.”

 

Mastermyne back on the road at South32’s Illawarra coal complex

Australia and coal focused Mastermyne Group has been given the nod by South32 to restart roadway development services at the Illawarra coal complex in New South Wales.

The contract, initially awarded back in August 2017, is expected to deliver annual revenues of some $18 million, according to Mastermyne.

South32 requested roadway development be stopped in line with the temporary closure of the Appin mine, part of the Illawarra complex, last year.

Mastermyne said the additional revenue generated through this contract secures the upper end of the 2019 financial year (to end-June 2019) guidance range of A$230-250 million ($165-179 million).

Mastermyne CEO Tony Caruso said: “We are very pleased to have recommenced work on this project and further extend out working relationship with South32’s Illawarra metallurgical coal operations.”

The company already has a contract in place with South32 for the provision of services at the Appin mine. This is primarily process works and supplementary labour in the Appin longwall area.