Downer to provide mining services at BHP Billiton’s Blackwater coal mine in Australia

4 June 2015 (Last Updated June 4th, 2015 18:30)

BHP Billiton Mitsubishi Alliance (BMA) has awarded a $100m contract to Downer EDI to provide mining services at the Blackwater coal mine in Bowen Basin, central Queensland, Australia.

BHP Billiton Mitsubishi Alliance (BMA) has awarded a $100m contract to Downer EDI to provide mining services at the Blackwater coal mine in Bowen Basin, central Queensland, Australia.

Scheduled to begin in July 2015, the two-year contract has an option for one more year extension.

The scope of work under the contract include the load and haul of pre-strip material.

The Australian engineering, construction solutions provider Downer will serve as the incumbent pre-strip contractor at the mine.

"Downer has a strong track record of providing mining services to BMA and helping it to drive efficiencies across its operations."

The existing term is due to expire on 30 June.

Downer EDI chief executive officer Grant Fenn said: "Downer has a strong track record of providing mining services to BMA and helping it to drive efficiencies across its operations."

"We look forward to extending our working relationship and continuing to deliver efficient solutions for the Blackwater coal mine."

In March, BHP Billiton had announced the suspension of coal operations at Blackwater mine following a truck accident that killed a worker.

Reuters reported that the accident that occurred at the mine involved a raptor transporter vehicle. It was reportedly the second accident within the same month at a Queensland coal mine.

In the six months before December 2014, Blackwater produced 3.5 million tonnes making up one-fifth of the company's output. The mine is one of seven owned by BMA in central Queensland.