Tag Archives: Grant Fenn

Downer EDI to offload Open Cut Mining East business to BUMA

Mining equipment, Mining mergers and acquisitions, Mining services, , , ,

Downer EDI Limited has entered into an agreement to sell its Open Cut Mining East business to an Australia-based subsidiary of PT Bukit Makmur Mandiri Utama (BUMA), a large mining services provider in Indonesia.

The transaction includes the transfer of the assets, liabilities (including employee entitlements), employees and contracts comprising the Open Cut Mining East business to BUMA.

Downer says it will receive approximately A$150 million ($110 million) in cash proceeds from the transaction, subject to completion adjustments. BUMA has paid Downer a deposit of A$16 million with the remainder of the purchase price payable at completion.

Downer CEO, Grant Fenn, said the sale of Open Cut Mining East is the final step in Downer’s divestment of its mining portfolio of businesses. Together with the previously announced mining and laundries transactions, total proceeds from Downer’s divestment program amount to A$778 million.

“An important part of our Urban Services strategy was the exit from our capital-intensive mining businesses,” Fenn said. “The sale of Open Cut Mining East is the last step of this process and follows the divestments of Open Cut Mining West, Downer Blasting Services, Underground mining, Otraco, the Snowden consulting business and our share in the RTL Mining and Earthworks joint venture.”

Completion of the transaction, which is subject to customary conditions (including novation of certain contracts), is expected to occur before the end of the 2021.

Downer EDI to continue work at Stanwell’s Meandu coal mine

Coal technology, Mine operation news, Mining services, , , , , , ,

Downer EDI has been awarded a five-year contract extension, valued at around A$600 million ($412 million), to provide mining and related services at the Meandu coal mine, in Queensland, Australia.

The mine is owned by Stanwell Corp, has a 7.6 Mt/y thermal coal capability and is in Queensland’s South Burnett Region.

Under the contract, Downer will carry out full mining services, including operation of the coal handling and preparation plant (CHPP). The new contract extends Downer’s current remit at the mine, which commenced in 2013 and expires on June 30, 2020. The new contract will commence on July 1.

Grant Fenn, CEO of Downer, said: “Downer has worked closely with Stanwell since 2013 and we look forward to continuing to provide safe and productive services at Meandu mine.”

Downer’s Queensland operations include the Blackwater, Commodore, Goonyella and Meandu coal mines.

Downer to power up FMG and Alinta’s Chichester Solar Gas Hybrid project

Environmental, Mine operation news, Mining services, Steel and iron ore, Sustainable mining, , , , , , , , ,

Downer is to help turn Fortescue Metals Group’s Chichester Hub iron ore operations into a solar power leader following the award of circa-A$165 million ($113 million) in contracts by Alinta Energy.

These agreements will see the company build Alinta’s 60 MW Chichester solar farm and supporting power infrastructure in the Pilbara region in the north of Western Australia as part of the Chichester Solar Gas Hybrid project, which FMG announced details of last week. It is expected to displace around 100 million litres annually of diesel used in the existing Christmas Creek and Cloudbreak power stations, according to FMG.

The project will see the construction of a new solar photovoltaic generation facility at Chichester Hub iron, as well as a circa-60-km transmission line linking Fortescue’s Christmas Creek and Cloudbreak mining operations with Alinta Energy’s Newman gas-fired power station and 35 MW battery facility.

Work awarded includes the engineering, procurement and construction of the Chichester solar farm, around 60 km of transmission line, two new substations and the upgrade of another, Downer said.

Grant Fenn, CEO of Downer, said the award is another endorsement of Downer’s experience and leadership in delivering renewable energy projects.

“We are looking forward to delivering the project in partnership with Alinta Energy and we are expecting an efficient integration of the solar farm and supporting power infrastructure into Alinta Energy’s existing network in the Pilbara,” Fenn said.

Downer is one of Australia’s largest and most experienced providers in the renewable energy market and power systems sectors, according to the company, delivering services to customers requiring both utility and commercial scale sustainable energy solutions.

The project is expected to be completed in the first half of 2021, Downer said.

Downer receives two-year extension at BMA’s Goonyella Riverside coal mine

Coal technology, Mine operation news, Mining services, Steel and iron ore, , , , , , , ,

Downer EDI says it has been awarded a A$200 million ($134 million) contract extension to provide mining and related services at BHP Billiton Mitsubishi Alliance’s (BMA) Goonyella Riverside coal mine, in Queensland, Australia.

The two-year contract commences today and replaces an existing agreement that commenced in 2016 and expired on September 30, 2019. It also has provisions for it to be extended for up to a further three years.

The scope of work to be carried out by Downer under the contract is pre-strip overburden removal, with Downer intended to use existing capital equipment to carry out this task.

Chief Executive Officer of Downer, Grant Fenn, said: “Downer has been working closely with BMA at a number of mine sites for many years and we look forward to continuing to provide safe and productive services at the Goonyella Riverside coal mine.”

Downer is providing similar services in Queensland at the likes of Blackwater, Goonyella, Commodore and Meandu mines.