Tag Archives: QCoal

Thiess receives A$450 million contract extension from QCoal

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Thiess says it has been awarded a A$450 million ($310 million) contract extension by QCoal to continue operations at the QCoal Northern Hub, which comprises Sonoma, Cows, Drake and Jax mines, located near Collinsville, Queensland, Australia.

Commencing in July 2022, the three-year contract will see Thiess continue to provide full mining services including statutory control of the site, all mining activities, maintenance and asset management, and rehabilitation works.

Thiess Executive Chair and CEO, Michael Wright, said: “We are proud of our long association with QCoal which has included a joint focus on mining efficiency, sustainability and ongoing rehabilitation works. This extension reflects our team’s track record of safe and consistent delivery of mining services for QCoal. We look forward to continuing to work collaboratively with QCoal for the next three years and beyond.”

Thiess Executive General Manager for Australia, Shaun Newberry, said: “We’re excited to continue our work at the QCoal Northern Hub where we have consistently provided innovative and low-cost mining solutions. Thiess has been part of the Collinsville community since 1995 and we are delighted to remain a significant regional employer and contributor to the local economy.”

Metarock Group transformation takes shape with new coal contracts

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Australia-listed Metarock Group has banked two contract wins this week, one at the Cook Colliery in Queensland and one at the Maxwell underground coal project in New South Wales.

The former has seen its Mastermyne subsidiary become the contract operator at Cook for Constellation Mining, a subsidiary of QCoal Group. The contract term of four years comes with a further two-year option and the company will see work commence immediately under the Mining Services Agreement.

The Cook Colliery was purchased by QCoal in July 2020 and has been maintained under care and maintenance since the acquisition. In July 2021, Mastermyne was selected to carry out a package of work to prepare the mine to re-commence production. This work included recommissioning of existing underground infrastructure, overhauling of mining equipment, establishment of production panels and other associated administrative and procurement works. This first tranche of work has been completed and the mine is now ready to commence production.

Mobilisation underground is already well progressed with the first Joy (Komatsu) miner underground and cutting coal as it forms up the production panels that will see the next Joy machines start production mining using a low-risk place changing methodology, Metarock said.

The project will produce approximately 4 Mt of run of mine coal over four years across three production panels.

At Maxwell underground, Metarock’s PYBAR Mining Services has been named the preferred contractor for the Maxwell Underground Project Access Drifts as part of an executed letter of intent with Malabar Resources. The contract term of 12 months will commence later this year following the execution of a binding Alliance-style mining services pact.

The scope consists of twin parallel drifts around 1.3 km in length, which will provide access to the targeted coal seams. Excavation of the drifts will be carried out with metalliferous-style drill and blast equipment and methods, modified for operating within a coal mining lease.

Having only recently completed the acquisition of PYBAR and the renaming of Mastermyne to Metarock, MD Tony Caruso said: “Mastermyne’s transformation from an underground coal contractor to a diversified mining services provider is taking shape and the awarding of this project (Maxwell) is a major vote of confidence from customers in the new larger business.”

He added: “This project is quite unique in that it brings together the combination of the Mastermyne and PYBAR skill-sets, which is a real differentiator for the Metarock Group.”

Mastermyne to re-start QCoal’s Cook Colliery met coal mine

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Mastermyne Group has been selected by Constellation Mining Pty Ltd, a subsidiary of QCoal Group, to operate its Cook Colliery metallurgical coal mine in Central Queensland, Australia.

The project will be restarted over two distinct phases with the first phase commencing immediately, according to Mastermyne.

The Stage 1 works will see the company re-commence the underground operations including bringing the operation out of care and maintenance and transitioning back into production. Stage 1 works will include re-commissioning of underground infrastructure, overhauling of mining equipment, establishment of production panels and all other associated administrative and procurement works. Stage 1 works are scheduled to commence immediately and be completed by late this calendar year.

The Cook Colliery was previously owned and operated by Bounty Mining, which went into administration after placing the operation in care and maintenance at the end of 2019. QCoal then acquired the asset in 2020.

In parallel to the Stage 1 works, the parties will finalise a Mining Services Contract for the underground operations (Stage 2). The expected contract value will be determined and communicated once negotiations for Stage 2 are complete, Mastermyne said.

Mastermyne, in conjunction with QCoal, has carried out a review of the mine and the previous mining methods used. The new planned mining areas and operational methods chosen have been based on a thorough assessment of the risks and opportunities, it said. The parties are confident that a measured, low risk approach will deliver consistent results over the extended contract term.

The company will provide further information to the market as the contract process progresses.

Mastermyne CEO, Tony Caruso, said: “QCoal is a very experienced and well-regarded mining organisation that is well known for developing high-quality assets utilising both owner-operated, and contractor-operated models. Both organisations have carefully considered the mining conditions and are confidently progressing with this project using the right methodology and under the right contracting model, which will result in a successful project for all parties.

“We are pleased to be commencing the Stage 1 works, and we look forward to building a long-term successful relationship with QCoal as we recommence mining operations at Cook Colliery.”

Sedgman books tailings dewatering work at QCoal’s Byerwen coal mine

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CIMIC Group’s minerals processing company, Sedgman, has been awarded a contract to design and construct a tailings dewatering facility at QCoal’s Byerwen coal mine in central Queensland, Australia.

The project will result in a lower operational risk profile, less power usage, and improved water recovery and management of dewatering chemicals, Sedgman says.

Sedgman Managing Director, Grant Fraser, said: “We are pleased to continue working with QCoal with a key focus on reducing impacts and undertaking environmentally responsible practices. The tailings dewatering contract at Byerwen is a great opportunity to achieve joint goals in ESG, an important focus for the industry.”

Construction work for the Byerwen mine will commence this month and the project will conclude in mid-2022.

Back in October, Sedgman was awarded two contract extensions by QCoal to continue to operate and maintain its Sonoma and Byerwen mines processing plants in Queensland.

Macmahon extends stay at expanding Byerwen coking coal mine

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Macmahon Holdings is to help increase production at the Byerwen mine in Queensland’s Bowen Basin after securing an expansion and three-year extension of its work at the coking coal operation.

Macmahon has been providing open-pit mining services at Byerwen since the establishment of the mine in November 2017 and employs more than 430 people on site. The mine is owned by Byerwen Coal Pty Ltd, a joint venture between QCoal Group and Japanese steel manufacturer, JFE Steel.

The new contract significantly expands production to 10 Mt/y of hard coking coal, and applies from June 1, 2020, until November 1, 2023. The expected revenue over the contract period will be A$700 million ($483 million), with full capacity expected from July 2020, Macmahon said.

There is also an option to extend the contract for a further two years after this period. If this option is exercised, revenue from the contract could exceed A$1 billion, according to the company.

The expansion will involve capital expenditure by Macmahon of A$16 million on ancillary equipment. The contractor has also procured two additional 800 t hydraulic excavators for the project worth A$37 million, it said.

Macmahon CEO and MD, Michael Finnegan, said: “We are very pleased to have secured this expansion and extension at Byerwen, which is one of our cornerstone projects in Australia. Byerwen Coal is an excellent partner and the project has been very successful since its inception. We look forward to continuing to work with our client on the development of this premium asset.”

QCoal Group Managing Director, Christopher Wallin, said the production increase at Byerwen was testament to the favourable economics of the project and the work of the QCoal staff and contract partners involved in developing the mine over several years.

“The development of the Byerwen project is a great success story for the industry, with the mine now emerging as a very low-cost producer of hard coking coal,” he said. “I am very proud that this expansion will enable us to further contribute to the Queensland economy with additional local employment and opportunities for regional communities.”