Mastermyne books hit $1bn with Gregory Crinum contract

Mastermyne employees

180 full-time personnel will be employed by the contract

Mastermyne has been awarded a $660 million mining services contract by Japanese company Sojitz Blue at the Gregory Crinum coal mine in central Queensland.

The contract will run for seven years, including six months of mine re-establishment, before ramping up for the remaining six and a half years.

Mastermyne undertook a feasibility study of the mine last year, after Sojitz acquired the coaking coal operation from BHP Mitsubishi Alliance (BMA) for $100 million.

This will be Mastermyne’s first contract of its size, lifting the company’s order book for the 2021 financial year to $1.1 billion.

Mastermyne chief executive officer Tony Caruso said it will be the platform for the company’s transformation.

“The execution of our first whole of mine operations contract is a major milestone for Mastermyne and is significant in transitioning the business into a commercial model that is not only complimentary to the existing contracting model, but will provide an even greater level of earnings certainty over the long term,” Caruso said.

The contractor’s work on the feasibility study positioned it as a prime candidate to receive the contract, with its intimate knowledge of the mine.

“Through the detailed feasibility work and contract negotiations the team has put together a balanced contract structure that minimises downside risk whilst at the same time rewards the business (through stronger margins) for better production performance,” Caruso said.

The mine will look to employ up to 180 full-time personnel at peak production and will produce around 11 million tonnes of coaking coal over its lifetime.

Mastermyne expected the contract to deliver an average of $80-$100 million in revenue per year at peak production.

Sojitz Blue chief executive officer Cameron Vorias said Mastermyne would be a perfect fit for the mine and Sojitz looked forward to continued work with the consultant.

“We are delighted to have Mastermyne as our highly regarded partner for this development and it will support our strategic plans for the growth of high-quality hard coaking coal from the area,” Vorias said.

The Gregory Crinum mine is located over 800 kilometres north-west of Brisbane.

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