Jellinbah Group awards $1.3bn contract extension to Thiess for Lake Vermont coal mine

10 December 2015 (Last Updated December 10th, 2015 18:30)

Jellinbah Group has awarded a contract extension worth $1.3bn to Thiess, the mining arm of CIMIC Group, to continue work at the company’s Lake Vermont coal mine in central Queensland, Australia.

Lake Vermont

Jellinbah Group has awarded a contract extension worth $1.3bn to Thiess, the mining arm of CIMIC Group, to continue work at the company's Lake Vermont coal mine in central Queensland, Australia.

Under the extension contract, Thiess will provide operations at the mine near Dysart for another three years until December 2021.

CIMIC Group executive chairman and CEO Marcelino Fernández Verdes said: "This contract extension reaffirms our strong relationship with the Jellinbah Group and recognises Thiess's commitment to providing value to our client's operation."

Thiess secured the contract to build the Lake Vermont mine infrastructure in 2007. The work included the design as well as construction of the coal handling preparation plant, site office and workshop.

In 2012, the mine infrastructure was expanded following a rise in production from the mine.

Since October 2013, the mine has a production capacity of 8Mtpa.

"Thiess has proactively worked with us to ensure that the Lake Vermont mine remains competitive on a global scale."

Jellinbah Group CEO Greg Chalmers said: "This is an important commitment for both companies.

"Thiess has proactively worked with us to ensure that the Lake Vermont mine remains competitive on a global scale, driving value through innovative technical solutions and a focus on operational outcomes."

Since 2008, Thiess carried out mining operations, including planning, operations, maintenance, and processing, in addition to loading the product on the train to market.

Lake Vermont mine is held by the participants of the Lake Vermont joint venture, which comprises Jellinbah Group (70%), Marubeni Coal (10%), Sojitz Coal (10%) and AMCI (10%).

The mine produces hard coking coal and PCI coal.


Image: Lake Vermont coal mine is located near Dysart in Central Queensland, Australia. Photo: courtesy of Thiess.