PIMS Group will provide underground mining services for the Millennium and Mavis Downs coal site in Queensland as part of a five-year partnership with M Mining.
Millennium and Mavis Downs is owned by MetRes, which is a 50/50 joint venture (JV) between Stanmore Resources and M Resources.
PIMS Group will be responsible for establishment of required infrastructure including conveyor systems, ventilation, associated mine services and surface infrastructure.
The deal will also see PIMS Group supply new underground mining equipment, including two continuous miners, bolters and shuttle cars as well as a range of ancillary production equipment to support the operation.
M Mining has the option of retaining all equipment at no additional cost on completion of the contract.
The contract includes an option to extend the agreement to support 15-years mine life, creating up to 100 mine construction jobs and more than 125 direct full-time mining jobs for the region.
M Mining director and owner Matt Latimore said PIMS Group’s partnership and risk sharing approach, together with employment of locals, was an attractive part of the bid.
“We are very pleased to execute this agreement with PIMS Group, which will facilitate the long-term, sustainable and competitive operation of the Millennium and Mavis Downs underground projects, with an experienced and reliable partner,” he said.
“PIMS Group have extensive experience in underground coal mining, especially in high productivity bord-and-pillar operations across Queensland and New South Wales. Work will commence immediately on preparation and scheduling for transition from open cut mining to underground mining.
“With the majority of the PIMS Group workforce living locally, we’ll be creating new local employment opportunities, with the potential for more jobs as the project ramps up over the next 12 months.
PIMS Group mining and mechanical engineer Richard Mills said his company strongly believed in the fundamentals of the project.
“We’re delighted to partner and support M Mining to successfully develop and extract the underground coal resource at the Millennium and Mavis Downs Mine,” he said.