Australian engineering company Downer EDI has secured a A$250m ($186m) contract extension to provide mining services for Stanwell’s Meandu coal mine in south-east Queensland.
The mine delivers approximately 5.5 million tonnes of coal per annum to the Tarong and Tarong North power stations located next to it.
Downer has been providing mining services at Meandu since January 2013 and the original contract completion date was agreed to be in June 2017.
Under the new agreement, the contract will now be extended until June 2020.
Downer EDI chief executive Grant Fenn said that the contract extension reflected the company’s performance and its proposal to deliver cost savings and operational improvements at the mine.
Initial work on the Meandu mine started in 1978 after the Queensland Government made the decision to go-ahead with construction of the adjacent Tarong power station.
The mine began regular deliveries in 1984 to the power station using a 1.5km conveyor and currently has five working pits.
Separately, the company also signed a technical services agreement with Adani to provide mine planning, design and project execution services for the AEL coal production sites in India.
The agreement has an initial value of $2m, with a term of one year.
As part of the contract, Downer will provide services such as technical and operational support for existing AEL coal mines, and will also be responsible for technical review of the bids for the Indian coal block auction.
Fenn added that signing the agreement will open a new opportunity in a new market for the Downer Group.