MACA Limited has secured a $700 million ‘life of mine’ contract for the provision of mining services at the Bluff coal project near Blackwater in the Bowen Basin.
The new mine, owned by Carabella Resources, is expected to employ about 140 people, and MACA said it would source the workforce from the local Blackwater area where possible.
Contract works will commence by the end of the year, with first coal is expected to be produced in early 2019.
Services to be provided will consist of all open-pit mining activities including planning, procurement, management and supervision, load and haul, drill and blast, and water management.
Bluff is expected to produce about 12 million tonnes of a Pulverised Coal Injection product (PCI), which will be processed at Bounty Mining’s Cook Colliery nearby.
MACA said it would finance the drop cut to first coal and other minor project works via a secured working capital facility of up to $25 million.
Bounty Mining said the coal from the Bluff mine would be processed at the Cook CHPP using spare capacity to produce a high quality, low ash, low-volatile PCI product for use in steel-making.
The term of the agreement is two years as Carabella plans for development of a standalone CHPP at the Bluff site.