Tag Archives: Illawarra

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.”

SCE wins transport contract for Peabody Metropolitan coal mine

Australia-based SCE says it has been awarded a multi-year contract to transport coal wash reject from Peabody’s Metropolitan mine in Helensburgh, New South Wales, to various tipping locations in the Illawarra district.

Under the contract SCE will be moving 400,000 t/y with special consideration to be given to the Helensburgh community to ensure minimal heavy vehicle impact operating between set hours (7 am-5 pm), including operating outside school zone hours.

The contract is estimated to be worth A$14 million ($9.83 million) during the initial three-year period with options for a further two-year extension.

Metropolitan uses underground longwall mining techniques to extract the coal which is then transferred by conveyor to the major surface facilities area. The coal is transported by train to the Port Kembla Coal Terminal for shipping to domestic and overseas customers. The mine sold 1.9 million tons (1.7 Mt) of coal from the mine in 2018.

“We are extremely pleased to have been awarded this contract by Peabody,” SCE Transport and Logistics Manager, Paul Minogue, said. “Metropolitan is one of the oldest continually operating coal mining operations in Australia and has been an integral part of the Helensburgh community for 130 years.”

He added: “Similarly, we have a wealth of experience in all facets of the mining services industry including stockpile management, emplacement services, civil projects, water management and transport solutions.”

Minogue said the company will have a fleet of up to 25 semi-trailers to transport coal wash reject from the mine site with the capability to flex down and up, depending on demand.

“As always, our top priority is to ensure we move all materials safely while also taking into consideration the communities in which we operate,” he added.

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.