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Mastermyne Group has sealed a deal to act as mining contractor for Bengal Coal’s proposed Dysart East Underground Coal Mine in the Bowen Basin.

Mining lease approvals are in place for the production of about 1.9mtpa ROM of metallurgical coal, with current JORC reserves of 84 million tonnes and the potential for further expansion at the site, 7km east of Dysart.

Mastermyne has been engaged through an Early Contractor Involvement (ECI) process.

The Mackay-based company said it had executed a binding term sheet with Dysart Coal Mine Management, acting on behalf of Bengal Coal, which would see it appointed as mining contractor for the proposed mine, subject to conditions.

DCMM will prepare a final bankable feasibility study focusing on developing a mining operation utilising continuous miners, shuttle cars and mobile bolters.

The study is expected to take 20 weeks to complete.

On completion of the study, and subject to final board and funding approvals, and finalisation of suitable commercial terms, DCMM will
appoint Mastermyne as the mining services contractor.

The contract is expected to include the box cut construction and drift driveage development (about 18 months’ work), and a further five years of coal mining operations.

“We are very pleased to have been engaged by DCMM and Bengal Coal at the early stages of this project,” Mastermyne chief executive officer Tony Caruso said.

Mastermyne lands contract for new Dysart coal mine
Mastermyne chief executive officer Tony Caruso.

“This engagement is yet another significant progression of the company’s strategy for whole of mine operations and reinforces our strong pipeline of these types of projects.

“We look forward to assisting with the study and seeing the mine move into production.”

Mastermyne also has an underground mining services contract with Sojitz Blue under negotiation as part of that company’s work towards restarting operations in the Crinum underground mine and won the contract last year to bring Anglo American’s Aquila project online.

Bengal Coal is a private Australian company incorporated in 2009 with the purpose of developing the Dysart East Coal Project. The company’s major shareholder is Indian coke producer Bengal Energy