Leighton Contractors awarded Jax bulk sample contract

4 Jul 12

QCoal has awarded Leighton Contractors’ Mining Division a contract for the Jax coal bulk sample project in Queensland’s northern Bowen Basin.

Hamish Tyrwhitt, Chief Executive Officer for Leighton Holdings, noted the award of the Jax contract demonstrates Leighton Group’s strong market position in the Queensland coal basin, underpins our status as the world’s leading contract miner, and highlights the success in bringing our core competencies in contract mining to the development of greenfield sites.

The contract includes construction of the mine industrial area, mining operations, management, mining fleet and services supply for the bulk sample project including drill and blast for mining of overburden and coal. It also includes supply and operation of temporary facilities for coal crushing and screening.

The project will initially deliver 350,000 tonnes of coal samples for testing in the Asian steel markets. Subject to the Jax Mine being approved by the Queensland Government later this year, the contract will be extended to mine up to 1.8 million tonnes of coal a year for a period of five years, valuing the contract at $430 million. The fully operational mine will provide work opportunities for about 100 people, with workers given the choice to live locally or commute.

Greg Fokes, General Manager – Coal, said the Mining Division’s proven capabilities in coal mining and mine services, including the current operation of six world-class mines in Queensland and New South Wales delivering more than 15 million tonnes of coal annually, had prompted QCoal to partner with Leighton Contractors.

Mr Fokes said Leighton Contractors’ relationship with QCoal dated back to 2007 with the development of the greenfield Sonoma Mine.

“Securing the contract at Jax marks another important milestone in the business relationship,” he said.

“We are delighted to once again team up with QCoal in progressing this exciting project from the bulk sample activity to a fully operating mine. Building on our previous collaborations in the region, this new contract will enable QCoal to take full advantage of our local experience and demonstrated capability in the northern Bowen Basin, and provide local and surrounding communities with new business and employment opportunities.

“This is another step in developing our long-term relationship with QCoal,” Mr Fokes said.