BGC wins $700m contract at Boggabri coal mine in NSW

BGC Contracting has been awarded a $700 million mining and equipment maintenance services contract at the Boggabri coal mine in New South Wales by Idemitsu Australia Resources.

The five-year contract at the open pit mine will start in December this year.

BGC Contracting chief executive officer Greg Heylen said the Boggabri contract was the company’s biggest win in NSW in recent years and endorsed its confidence in the potential for growth in the state.

“In addition to the size of the contract, it is a significant strategic success as we seek to expand nationally into new locations and commodities, particularly in coal,” Heylen said.

“I am confident that our collaborative approach of working closely with our clients will ensure that Boggabri mine can maximise its performance.”

Heylen added that BGC Contracting was committed to supporting the people currently employed at Boggabri Mine and the local community.

“Recruiting locally is good corporate citizenship and an important factor to ensure the safety of people on the project, the retention of valuable skills and the smooth transition of services. These are our highest priorities,” he said.

Idemitsu chief operating officer Steve Kovac said Idemitsu’s strategy for the mine’s operation had been reviewed over the past year.

BGC’s track record in building long-term partnerships with its bulk-commodity clients is the best fit with the approach Idemitsu is seeking, he explained.

“BGC Contracting has demonstrated a very clear understanding of our strategy for an integrated, lean management team with shared business goals. Our businesses have a good cultural fit which will allow us to develop a strong, mutually beneficial relationship well into the future,” Kovac said.

“Having the support of a partner with the capacity and willingness to work collaboratively will deliver improved operational performance, which is paramount to the continued success of the mine.”

Kovac confirmed Idemitsu’s commitment to sourcing the required personnel from the current workforce and the local Boggabri and surrounding communities.

“The current workforce will have the opportunity to continue working with us at Boggabri mine into the future, if they choose to be part of the process,” he said.

Boggabri coal operations and BGC plan to provide details of specific employment opportunities as soon as possible, including how those who would like to work with the company can register their interest.

The Boggabri mine produces up to 7Mtpa of coal with a mine life to 2033.

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