PIMS Group has received a contract, worth $310.6m (A$425m), to provide underground mining services for the Millennium and Mavis Downs coal site in Queensland, Australia.

The five-year contract has been awarded by MetRes, a 50:50 joint venture between Stanmore Coal and an M Resources’ affiliated entity.

Under the contract, PIMS Group will provide underground mining services using the bord and pillar method, starting at the Mavis Downs and transitioning to Millennium at a later stage.

The production from the site is expected to be more than 1.2 million tonnes run of mine per annum from July 2022.

In a press statement, Stanmore Coal said: “With $80 million to be spent on infrastructure, civil works and locally built mining equipment the mine represents a boost to the Australian economy as Queensland continues to recover from COVID-19.”

“By extracting full value from the existing mining leases the operation will continue to deliver employment and economic activity to the region.”

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The contract is expected to create up to 100 jobs during the construction phase and more than 125 full-time jobs for the region.

The contract follows the acquisition of the Millennium and Mavis Downs site by MetRes from Peabody Energy Australia, earlier this year.

Currently in care and maintenance, the mine is located near Moranbah, near Stanmore Coal’s Isaac Downs project.

The mine had historically produced benchmark level HCC64 hard coking coals and PCI coals, which are said to be complementary products to Stanmore Coal’s existing mines.

The restart of the coal mine could generate 150-200 jobs.