Fitzroy Australia Resources has formed a partnership with Nepean Mining for the design and delivery of equipment and infrastructure for the Ironbark No. 1 coal mine, located in central Queensland in the Bowen Basin.

Under the terms of the partnership agreement, the companies will complete the project together in two phases.

The first phase includes the accelerated design and development, while the second involves acquisition, installation and commissioning.

Fitzroy intends to leverage Nepean’s stream specialist businesses, including Nepean Conveyors, Nepean Power and Nepean Longwall to deliver the project.

Under the terms of the partnership, Nepean will design and supply conveyors, electrical systems, electrical reticulation, the mine ventilation system and the longwall system.

Fitzroy Australia Resources CEO Grant Polwarth said: “We are excited about working with Nepean in a true partnership sense to deliver a result which has the potential to be company-building for both groups, as well as change the industry landscape and expectations on major project delivery.”

Established in 1974, Nepean offers underground and surface mining equipment and delivers specialist commissioning and optimisation services, and lifecycle support capabilities.

Nepean Mining CEO Miles Fuller: “This partnership will achieve a superior outcome for Fitzroy, by significantly reducing project cost, accelerating delivery time, and ensure superior equipment lifecycle performance.”

“This project has the potential to be company-building for both groups, as well as change the industry landscape.”

Fitzroy received an approval for a mining lease for the Ironbark No. 1 project earlier this month.

The company acquired the mine, which is adjacent to Carborough Downs mine and the Broadlea project, from Brazilian mining firm Vale in November 2016.

The underground longwall operation is estimated to produce up to six million tonnes of coal per year.

Fitzroy aims to produce first coal in the first quarter of 2020.