NRW Holdings Ltd (ASX:NWH) has announced its wholly-owned subsidiary Golding Contractors has finalised terms and executed a formal contract with respect to mining work at the Baralaba North coal mine in Queensland. The initial contract term has been extended by four months, and has an indicative value of $420 million. Work is expected to be completed in June 2021. The scope of the contract includes drilling, blasting, loading and hauling overburden, and handling of coal through the crushing and screening plant.
NRW Holdings Limited (ASX:NWH) is pleased to advise that further to previous ASX announcements with respect to the Baralaba North Coal Mine, the parties have now finalised terms and executed a formal contract.
The scope of the contract between NRW’s wholly owned subsidiary, Golding Contractors Pty Ltd (Golding) and Wonbindi Coal Pty Ltd (a subsidiary of Baralaba Coal Company Pty Ltd) includes overall mine planning; the removal of topsoil; drilling, blasting, loading and hauling overburden; loading and hauling of coal; and handling coal through the crushing and screening plant. As noted below, preliminary works have been proceeding under a Limited Notice pending finalisation of the contract terms
All major plant and equipment to be utilised for mining operations will be supplied by the client.
The contract has an indicative value of $420 million over the term, which will complete in June 2021.
NRW CEO & Managing Director Jules Pemberton commenting on the contract said, “The partnership style contract reflects the parties’ intention to work closely and collaboratively together. It is drafted to incentivise the contractor to maximise coal production and to perform at below budget cost. Actual project costs are reimbursable.”
Golding Executive General Manager Geoff Caton added, “Golding is delighted to have executed this contract to provide a complete mining service solution for the operation of Wonbindi’s Baralaba North mine. We have worked closely with the company over the last two months to restart the mine. Two fleets have now been commissioned and operating, with first coal to be mined today. Golding will continue to commission additional fleets to reach full production by the end of 2018.”