Contractor takes on Peabody

WDS is in a dispute with Peabody Energy of contracts at its NSW coal mines.

According to the company it is currently in a dispute resolution process in regards to contracted work and pay for a contract at the Metropolitan underground coal mine in Helensburgh.

Peabody suspended operations at the site late last month, after which it sought to terminate the work contract with WDS.

However, WDS has disputed the validity of this termination "and has affirmed the contract and will be defending claims made by Peabody Energy".

It said it expects "to undertake work on this project to a value of $5.3 million before the end of the financial year".

The Metropolitan mine is reportedly the country's oldest continually operating coal mine, having been founded in 1888.

It produces coking coal, and has approvals for another two decades of operations, with major expansions.

These expansions were first given approval in 2009, and the miner was planning to grow it to support Peabody's metallurgical coal target of between 12 and 15 million tones annually by 2014.

Last year the Metropolitan mine won the NSW Minerals Council's Environment and Community Excellence Award.


Image: Helensburgh Colliery

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