Babylon Pump & Power has added another significant contract to its books, signing Premier Coal to a $16 million deal at its namesake coal mine in Western Australia.
The contract will see Babylon overhaul Premier’s engines with the exchange and supply of 44 new ones, plus the labour to support them as required.
Premier is managed by Yancoal Australia and the coal mine produces four million tonnes per annum near Collie in the state’s South West region.
Babylon will begin the supply of goods and services from January 3 until the beginning of 2025, with the option to extend the contract by one year.
“The board of Babylon is excited by this significant opportunity granted by Premier and looks forward to delivering on the agreement over the term,” Babylon stated.
Premier operates a 240-tonne truck and large shovel fleet, plus crushing, blending and train and truck loading facilities.
The mine employs about 400 people and has operated several iterations of the mine since the 1950s to supply coal to local power stations. The Premier mine remains Western Australia’s largest coal producer.
Babylon’s contract with Premier follows a recent deal with Rio Tinto for the supply of off-site repair services for several of the miner’s operations.
The contract between Rio Tinto and Babylon will commence immediately upon signing and has an initial term of three years with a two-year extension period.
This Rio contract extends Babylon’s working relationship in the mining sector. Since October 2018, Babylon has also supplied and installed power generation equipment at BHP’s Mining Area C surplus water pipeline project.