NRW Holdings Ltd’s wholly-owned subsidiary, Golding Contractors, has signed a five-year contract extension with Southern Cross Fertilisers.
The contract with the Incitec Pivot subsidiary means Golding’s mining agreement at Phosphate Hill, in Queensland, Australia, will extend to September 6, 2026.
The expected contract extension value is anticipated to be between A$110-$120 million ($82-89 million) over the term.
Incitec Pivot agreed to purchase Southern Cross Fertilisers, then Australia’s only producer of ammonium phosphate fertilisers, from BHP for A$165 million back in 2006. The operation produced 979,300 t of ammonium phosphates in Incitec Pivot’s 2020 financial year to September 30, 2020.
Golding’s existing mining fleet will continue to operate in the mine and gypsum operations, with new capital spend limited to replacement of select light and medium vehicles, NRW said.
Golding employs around 80 people at the mine that operates on a fly-in fly-out arrangement from Townsville in northern Queensland.
NRW CEO & Managing Director, Jules Pemberton, said: “This contract extension reaffirms the strong relationship Golding has formed with Southern Cross Fertilisers at Phosphate Hill for more than a decade now, under various contract arrangements, and reflects our ability to secure repeat business through the quality and value of our service offering.”