NRW subsidiary Golding Contractors and Baralaba Coal subsidiary Wonbindi Coal have agreed to extend the limited notice to proceed (LNTP) on the Baralaba North coal mine in Queensland to May 9, increasing the contract’s value from $350 million to $420 million and extending the contract terms by four months.
The Baralaba North coal mine had been on care and maintenance after Baralaba Coal (under previous moniker Cockatoo Coal) had to appoint administrators in late 2015 following the failure of an $81 million guarantee from banking major ANZ.
The LNTP was first announced in March and anticipated a proposed initial value of $350 million for a contract between the two companies over a three-year period.
Initially, the LNTP was extended in April to May 5 to give the companies additional time to finalise contracts and optimise mine plans, but this new extension by four days to May 9 has increased the value of the contract by $70 million.
So far, blasting and overburden removal have commenced at the open-cut metallurgical coal mine, and two excavator and truck fleets have been commissioned.
Other works scheduled for Baralaba North’s restart include planning, drilling, coal handling, crushing and screening activities. The deal represents a significant expansion for Golding, which was acquired last year by NRW in an $85 million deal.