QCoal has awarded Leighton Contractors’ Mining Division (LEI) 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.
Leighton Contractors (LEI), through its Mining Division, has also been awarded a three and a half year contract extension worth approximately $738 million for the provision of mining services at the Sonoma Mine in Queensland’s northern Bowen Basin.
Hamish Tyrwhitt, Chief Executive Officer for Leighton Holdings, added this project award is closely aligned with the Leighton Group’s core competencies in contract mining. Our success in winning the contract demonstrates the value placed on our expertise and excellence by clients such as Sonoma Mine Management and our ability to deliver sustainable growth through the extension of existing contractual arrangements. The contract, awarded by Sonoma Mine Management Pty Ltd, encompasses project management including site statutory obligations, fleet maintenance and operational services for coal and overburden mining.
Leighton Contractors’ relationship with Sonoma Mine Management dates back to 2007 when its mining team commenced operations at the greenfield site. Since then, Sonoma has produced a mix of 14 million tonnes of hard coking and thermal coal for rail and shipping, and provides work opportunities for approximately 400 people, predominantly from the local region.