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Mastermyne Group has secured an extension on its development and outbye services contract for Anglo American’s Aquila coking coal project, near Middlemount in Central Queensland.

The Mackay-based mining contractor has been engaged since August 2019 to work at the site, which is expected to come into production in 2022.

Total revenue generated from the variation and extension to the mining contract is expected to be approximately $60 million.

The variation will extend the current contract for 12 months (to March 2022), and includes the operation of an additional roadway development unit.

Mastermyne employs 178 full time personnel under the existing contract, with a further increase of around 60 full time personnel required for the operation of the additional roadway development unit.

The company expects up to half of the personnel for this third development unit at Aquila mine to be relocated from the company’s Moranbah North project, following the completion of planned activities there.

Mastermyne said mobilisation of the additional workforce at Aquila would be completed this month and the compnay would continue to supply development equipment from its fleet, including a continuous miner and ancillary equipment.

“The company is very pleased to have extended this contract and undertake additional roadway development works,” Mastermyne chief executive Tony Caruso said.

“We have been working to deliver major underground infrastructure and roadways safely and efficiently, and we look
forward to continuing our work with Anglo American to deliver their new longwall project, producing premium high quality hard coking coal.”

The initial contract Anglo American awarded to Mastermyne was valued at $95 million and covered roadway development in the mains and gate roads, and all outbye related services for the establishment of the new longwall operation.