M Mining has contracted Australian Mining Rehabilitation (AMR) and MCC Group for mining and site services, respectively, at the Millennium and Mavis Downs coal mine in Queensland.
AMR’s $30 million open cut mining services will include drill and blast, overburden and coal mining duties, beginning in August 2021.
AMR will work with Coal Auger Services to ramp the mine up above 500,000 tonnes of run of mine (ROM) coal in financial year 2022.
M Mining director and owner Matt Latimore outlined the plan for AMR at the mine.
“We are very pleased to execute this agreement with AMR, providing a cost effective and agile mining option with an experienced partner,” Latimore said.
“The scheduled production over the next 10 months provides us with baseload coal tonnage, with operating cashflows supporting the transition to underground mining in mid-2022.”
“AMR’s employment of locals was an attractive part of their bid. We are pleased to be supporting our communities by emphasising local jobs.”
AMR managing director Brad Marshall recognised the importance of restarting the mine and was glad to be a part of the move.
“We’re delighted to support M Mining following their acquisition of the Millennium Mine, assisting them to derive value from the coal resource,” Marshall said.
“We are proud to support M Mining’s growth as a producer in the metallurgical coal industry and to work alongside them to develop Millennium back into a fully functional low-cost-per-tonne mine.”
AMR’s contract will employ around 120 new workers, while MCC Group’s $1.5 million site services contract will employ around 15 people.
The family-owned civil, mining and construction business will provide dewatering and pit preparation works as Millennium and Mavis Downs closes in on mining commencement.
“We’re getting on with the job of restarting Millennium Mine, and we are just so pleased to have great local companies and their teams coming onboard,” Latimore added.
MetRes – a joint venture between Stanmore Resources and M Resources which acquired the mine in April – has stated it expects first coal in October.