Golding Contractors Pty Ltd has signed a contract with Aberdare Collieries Pty Ltd, a subsidiary of CS Energy Pty Ltd (CS Energy), to extend the current Contract Mining Agreement (CMA) at the Kogan Creek Mine in Queensland, Australia, to beyond June 30, 2022.
Under the terms of the CMA, the term is extended four years until 30 June 2026, with an option for CS Energy to extend the contract for up to another four years, the NRW Holdings subsidiary said. The contract value for the initial four-year extension is around A$150 million ($110 million).
The contract extension represents the third mining contract term and life-of-mine to date for Golding and CS Energy at Kogan Creek, with Golding performing the civil works in 2006 before mining commenced in 2007.
Kogan Creek is an open-cut mine located in the Surat Basin of southern Queensland. The mine supplies the adjacent Kogan Creek Power Station with approximately 2.5 Mt/y of coal. Golding undertook civil works for the initial construction of the mine before becoming the mine operator in 2006.
Under this new arrangement all major plant and equipment will be supplied by Golding requiring a total new capital spend of circa-A$11 million in the first year. All the remaining fleet required is currently operating on site and is Golding owned.
Golding will continue to employ some 70 people at the mine, most of which live in the local Chinchilla or broader southeast Queensland regions. The scope of work includes: mine design and planning, drilling and blasting, overburden and parting removal as well as selective coal mining from over 30 different plies to ensure coal meets strict specifications.
NRW CEO & Managing Director, Jules Pemberton, said: “This extended agreement is the longest continuous contract in Golding’s proud history. Golding has now successfully negotiated four contract extensions with four different clients in the last six months demonstrating the business’ goal to work with our clients to deliver sustained value.”