Mastermyne Group has signed a mining services agreement with GM3 relating to the Dendrobium underground metallurgical coal mine in New South Wales (NSW), Australia.
The contract is set for an initial two-year period, with two options to extend by a further two years each.
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The deal is expected to generate gross revenues of around A$85m ($59.7m) for the initial term, potentially reaching approximately A$255m over six years if both extensions are exercised.
Work under the agreement is due to commence in September 2026.
The new contract will require more than 140 additional roles and extend Mastermyne’s involvement at the Dendrobium site, where it currently provides strata consolidation and project-related services.
Mastermyne indicated that there may be further opportunities for its operations at the mine, which would be communicated if they occur.
GM3, a joint venture between Golden Energy and Resources and M Group, Mastermyne’s largest shareholder, is focused on metallurgical coal production.
Mastermyne managing director and CEO Jeff Whiteman said: “We are excited to build on our existing partnership with GM3, expanding the range of services that we deliver at Dendrobium mine, which is in addition to our mining services contract encompassing approximately 220 roles at GM3’s nearby Appin mine that commenced mid-2025.
“Looking ahead, we enter FY27 [fiscal year 2027] with considerable momentum and confidence. The company’s order book and pipeline of opportunities remains strong, underpinned by sustained demand for specialist underground coal mining services throughout the East coast coal basins.”
The Dendrobium mine began construction in January 2002 and longwall mining operations commenced in April 2005.
The mine supplies metallurgical coal, primarily to Australian steel manufacturers including BlueScope Port Kembla Steelworks and Liberty Primary Steel Whyalla Steelworks.
The operation has development consent until 2030.
