South32 has extended an outbye services contract with Mastermyne for the Illawarra Metallurgical Coal operations in New South Wales.
The contract extension is forecast to generate a revenue of around $17 million over the seven-month period until June 2020.
Under the contract, Mastermyne will provide for a range of services in managing outbye processes and supplementary labour in the Appin colliery longwall area.
This extension aligns with Mastermyne’s roadway development contract operating in parallel at Illawarra.
The roadway development work commenced in late 2018 and is expected to generate $18 million in revenue every year.
Mastermyne has provided contracting services to Illawarra operations for over 15 years, according to chief executive Tony Caruso.
“We have worked closely with South32 for some time now, and putting this extension in place means both organisations are able to plan and get set for the longer term requirements at the mine,” Tony Caruso said.
“We look forward to assisting South32 with their next stage of underground growth at the Appin Colliery.”
The combined contracts are set to continue the employment of up to 230 workers. The extension also allows Mastermyne to finalise an enterprise agreement with its workforce.
South32’s Illawarra operation is located around 75 kilometres south of Sydney.