Delta SBD have won a contract for mining services at Wollongong Coal’s Wongawilli mine.
Delta will replace the existing workforce and equipment.
“Delta is to be appointed as operator of the mine and will supply coal extraction equipment, an experienced management team, and workforce to produce coal from the mine,” Delta said in a company statement.
“During the recent period, the mine has undergone operational preparedness workers and negotiations to identify roles and responsibilities.”
No valuation has been given for the contract, however it is understood Wollongong Coal will pay Delta under a per tonne arrangement set to run over 20 months and produce 1.45 million tonnes.
First production under the new contract is slated for this month, with first shipment expected in the first quarter of 2017.
“The platform is now set for the project team and experienced workforce to seize a real opportunity,” Delta CEO Neville McAlary said.
He went on to state the company is confident it can achieve its set production levels.
“It is a real benefit that Delta has recently overhauled relevant equipment for the project and this will supply the experienced workforce with both safety and production fundamentals.”