Stanmore Coal has awarded Golding Contractors an A$500m ($363.58m) extension to the existing mining services contract at Isaac Plains East coal mine in Queensland, Australia.

The five-year contract extension requires Golding to continue the provision of mining services until June 2024. It comes after the company secured a one-year extension in June this year.

Golding, which is a wholly-owned subsidiary of NRW Holdings, is expected to deploy new equipment worth around $40m to support the contract extension.

NRW CEO and managing director Jules Pemberton said: “I am extremely pleased that the Golding relationship with Stanmore Coal at Isaac Plains has continued with the award of a five-year contract extension at Isaac Plains East.

“The relationship, which commenced in 2015, has been a productive and successful partnership and we look forward to supporting Stanmore’s growth ambitions as they further develop their extensive resource base over the coming years.”

Stanmore noted that the new extension will offer flexibility to vary production through a cost-effective structure to meet market conditions.

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In addition, the contract structure is said to offer flexibility to manage the transition to Isaac Downs upon receipt of environmental approvals, as well as the ability to exercise an option to own and operate the coal handling and preparation plant (CHPP) if required.

“The relationship has been a productive and successful partnership and we look forward to supporting Stanmore’s growth ambitions.”

Stanmore Coal managing director Dan Clifford said: “I am extremely pleased to be extending Stanmore’s contract agreement with Golding at the Isaac Plains East mine. This is building on the very effective and productive relationship we have had at the Isaac Plains mine.”

The company will also work with Golding to assess future synergies to transition to adjacent open cut mining areas.

In August this year, Stanmore updated the total coal reserves at the Isaac Plains mine and Isaac Plains East to 14.9 million tonnes as at 30 June.