Downer wins mining contract extension at Boggabri Coal

Downer EDI has won a one year mining contract extension for its operations at the Boggabri coal mine.

It has worked at the site since Boggabri began production in 2006.

The original contract ended in November 2011, and since then Downer won an extension for its mining services contract until December 2016.

This new contract will see its operations now run until 30 November 2017.

The contract has also sold some of its mining equipment to the mine’s owner, Idemitsu Australia Resources, for around $100 million.

Grant Fenn, Downer’s CEO, explained that the two companies have been actively working to reduce costs at Boggabri.

Mid-last year the contract slashed 100 jobs from the site, later re-hiring 70 new workers, explaining that it was focusing on recruiting locally, despite claims that locals were sacked whilst  Papua New Guineans on 457 visas remained on site.


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