Civil engineering giant Downer EDI has been granted preferred tenderer status towards renewing five-year contract to continue proving mining services at Boggabri, an open-cut coal mine in New South Wales.
Downing has run the mine since 2006 and its curre
Civil engineering giant Downer EDI has been granted preferred tenderer status towards renewing five-year contract to continue proving mining services at Boggabri, an open-cut coal mine in New South Wales.
Downing has run the mine since 2006 and its current contract will expire in December next year. A renewal would extend the job until 2016.
Contract negations are expected to be completed by the end of this year.
The value of the contract depends on the production output of the mine and owner Idemitsu Australia Resources has yet to finalise this.
However, the base case values mine revenue at about $A900 million over the five years of contract.
Under the base case, the required capital commitment will include $A41 million of existing plant and equipment related to the current contract plus new equipment of $A114 million.
