Downer EDI strikes $100 million contract with BHP Billiton

Australian mining contractor Downer EDI has won a $100 million contractor with BHP Billiton Mitsubishi Alliance (BMA) to provide mining services at the Blackwater coal mine in Bowen Basin, central Queensland, Australia.

The two year contract, with an additional one year option, is scheduled to commence in July 2015, with the scope of works including the load and haul of pre-strip material.

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Downer EDI chief executive officer Grant Fenn said: "Downer has a strong track record of providing mining services to BMA and helping it to drive efficiencies across its operations."

"We look forward to extending our working relationship and continuing to deliver efficient solutions for the Blackwater coal mine."

The Australian engineering, construction solutions provider will serve as the incumbent pre-strip contractor at the mine.

The existing term between Downer EDI and BHP Billiton Mitsubishi Alliance is set to expire on June 30.

Last June, BHP terminated a $360 million coal removal contract with Downer for its Goonyella Riverside mine in Queensland.

In March of this year, BHP Billiton announced the suspension of coal operations at Blackwater mine following a truck accident that killed a worker.

Downer EDI has also signed a mega contract with Adani Mining for its Carmichael coal project in Queensland. Under the five-year deal, which includes two additional one-year options, Downer will provide mining services and construction of mine infrastructure for thermal coal mine, including statutory management and mine operations, drilling, blasting and load and haul of waste and coal.

Read the full press release here. 

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