Meandu Mine currently has four working pits and is capable of supplying the adjacent Tarong and Tarong north power stations with up to four million tonnes of coal a year, with sufficient coal to fuel the stations until at least 2037.
Downer has been providing total mining services at Meandu since January 2013, worth in the order of $A600-800M, and the original contract was due to end in June 2018 (5.5 years). Downer has now signed a two year extension, to June 2020, valued at approximately $250 million.
The total mine service contract covers mine management, planning, drilling, overburden removal (including dragline and truck-and-shovel operations), coal mining, coal processing, rehabilitation and maintenance of mobile and fixed plant. The project uses a combination of dragline and truck-and-shovel operations.
The company said the contract extension reflected Downer’s strong performance and its ongoing commitment to deliver cost savings and operational improvements at the mine.
This extension comes on the heels of Downer's $2 million Technical Services Agreement (TSA) with Adani Enterprises Limited, which takes effect in July 2016 and has an initial term of 12 months. Downer will provide mine planning, design and project execution services for the Adani's coal mines in India. The services will also include technical and operational support for existing Adani coal mines and technical review of the bids for the Indian coal block auction.