Stanmore Coal and NRW Holdings are set to maintain run-of-mine (ROM) coal volumes from the Isaac Plains East mine at Moranbah, Queensland with the addition of a third truck and excavator fleet.
NRW subsidiary Golding Contractors will increase Isaac Plains East’s overburden removal capacity toward production volumes of around three million ROM tonnes a year.
The increased scope of contract adds around $450 million to Golding’s existing five-year contract with Stanmore, with a total contract sum estimated at around $950 million at current production levels.
Golding will launch the third fleet in August by supplying an additional Hitachi EX3600 excavator, five EH3500 Hitachi trucks and the remainder of the ancillary fleet, the majority of which will be mobilised from the Middlemount coal project.
NRW will also replace the five EH3500 trucks with five EH4000 Hitachi trucks as they become available from Middlemount.
The contractor expects its capital commitment to be “very low” at around $10 million as it is able to secure an agreed early release from Middlemount.
“The Middlemount contract is not formally due for completion until the end of the 2020 financial year, however we will be able to release certain fleet prior to that date and some fleet will also likely remain on site beyond the formal contract end date,” NRW chief executive Jules Pemberton said.
Stanmore Coal has also set up an equipment loan facility with Caterpillar Financial Australia to supply a Cat 6060 excavator, which is expected to be commissioned later in the year for Golding to operate and maintain.
This additional fleet will enable Stanmore Coal to operate the existing site infrastructure at capacity which is matched to the port contracts.
Once Stanmore receives environmental approvals for the Isaac Downs project, the excavator will be transferred to allow accelerated ramp up of the project.
The Isaac Plains underground project will be deferred until mining at the Isaac Downs project is largely complete, or until additional port and coal handling processing plant capacity are secured.