NRW Holdings has signed a letter of intent with Coronado Global Resources to extend its mining services deal at the Curragh coal mine, adding around $1 billion to the contract value.
Under the letter of intent, more than five years will be added to the the six-fleet contract, pushing the relationship between NRW subsidiary Golding Contractors and Coronado to 2026.
Before the letter of intent, the original contract was set to end in September 2021.
NRW chief executive officer and managing director Jules Pemberton said the company had every intention to maintain the fruitful partnership.
“This agreement maintains the relationship Golding has established at Curragh mine since 2014 and reflects our continued ability to support our client’s mine plans,” Pemberton said.
The new arrangement is expected to see Golding spend up to $46 million on equipment, while continuing to employ around 500 people at Curragh.
This figure will depend on the final scope of the extension, the value of which could range between $1 billion and $1.4 billion.
The extension follows a contract amendment in December 2020, when Coronado requested two more fleets be added by Golding – bringing the agreement up to the current six fleets.
The December amendment added around $50 million to the existing contract, pushing the total value up to $107 million over the remaining term to September 2021.
The latest two fleets added 150 employees to the workforce at Curragh, while incurring no additional expenditure as the equipment was sourced internally.
The Curragh mine complex is one of Australia’s largest sources of metallurgical coal, with Coronado producing 8.8 million tonnes of coal during first half of 2021.
This was up 10 per cent on the first half of 2020.