Golding and Wonbindi finalise terms for $420m Baralaba North coal mine

Following on from news earlier this week that the deal between Golding Contractors and Wonbindi Coal over the Baralaba North coal mine had increased in value from $350 million to $420 million thanks to a three-day extension on the limited notice to proceed (LNTP), the two companies have announced that terms have been finalised. Golding and Wonbindi are subsidiaries of NRW Holdings and Baralaba Coal, respectively.

The contract, which involves overall mine planning, topsoil removal, drilling, blasting, loading, hauling overburden, coal loading and hauling, and crushing and screening, is expected to be completed by June 2021.

NRW chief executive officer and managing director Jules Pemberton said that the the two companies would work closely and collaboratively together.

“[The contract] is drafted to incentivise the contractor to maximise coal production and to perform at below budget cost,” he said. “Actual project costs are reimbursable.”

The Baralaba North coal mine had been on care and maintenance after Cockatoo Coal, the former name of Baralaba Coal, appointed administrators in late 2015 following the failure of an $81 million guarantee from ANZ.

Golding executive general manager Geoff Caton was delighted to finalise the contract, stating that Golding had “worked closely with [Wonbindi] to restart the mine.

“Two fleets have now been commissioned and operating, with first coal to be mined today. Golding will continue to commission additional fleets to reach full production by the end of 2018.”

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