April 20, 2012
Stanwell is in the process negotiating a new long-term mining contract for Meandu Mine and expects to confirm the successful contractor in June.
The current contract, with Thiess, expires in December this year.
The mine, which has been operated by Thiess since 2008, supplies up to 7 million tonnes of coal per year to Tarong and Tarong North power stations, with sufficient coal to fuel the stations until at least 2031.
The original Thiess contract began in 2008 and was extended for another 12 months in December 2011.
The new contract has a potential value of between $130 million and $160 million a year and could run for 10 years or more.
Stanwell General Manager of Mining Operations Bob Rutten said a long-term mining operations agreement would give further certainty to the contractors, workforce and the community.
“Stanwell’s three-year agreement with the current operator Thiess is nearing an end,” Mr Rutten said.
“We are engaging with a number of companies who have a demonstrated capacity and capability to deliver on our requirements.
“We are working through a short-listing process, with the aim of confirming the mining contractor by June 2012.
“The expected life of the power stations and the mine lends itself to a longer-term mining operations agreement.
“A longer-term agreement will also deliver significant benefits for the community, by having a secure and stable business operation and workforce which has flow on effects in terms of local employment and spending.”
The new mining agreement would come into effect in January 2013.
