Downer secures $600m contract at BMA coal mine

Image: BHP

Downer EDI has been awarded a $600 million contract to provide mining and related services at BHP Billiton Mitsubishi Alliance’s (BMA) Blackwater coal mine in Queensland.

According to Downer, the contract extends its relationship with BMA by consolidating two existing agreements and does not have any material impact on the contractor’s existing operations at Blackwater.

The three-year agreement at the Central Queensland coal mine will involve overburden removal and haulage, equipment maintenance, and drilling services.

Downer chief executive officer Grant Fenn said the company was pleased to be extending its relationship with BMA at Blackwater.

“Downer has been working closely with BMA at a number of mine sites for many years and we look forward to continuing to provide safe and productive services at the Blackwater coal mine,” he said.

The contractor previously announced that it was awarded two contracts at Blackwater worth $225 million over three years in 2015.

Fenn said Downer was providing mining services at several Queensland operations, including the Blackwater, Goonyella, Commodore and Meandu mines.

The latest Blackwater contract also adds to several recent contract wins for Downer. Earlier this month, it announced $155 million in contracts, including mining and energy deals with Chevron and Alcoa in Western Australia, and BHP in South Australia.

Downer was also awarded a $400 million contract to provide mining services at the Gruyere gold joint venture between Gold Fields and Gold Road Resources in WA last December.