An integrated services company has renewed its successful tender for a coal operation in southeast Queensland.
Downer EDI recently secured an extended mining contract for Stanwell Corporation’s Meandu Coal Mine in Tarong, 167km west of the Sunshine Coast.
$600M for five years
The new agreement means the contractor will continue to operate the mine for another five years, starting from July 2020. QMEB can reveal the deal is worth about $600 million and no new jobs have been advertised as a result of the extension.
The proponent chose Downer because it would reduce fuel costs at the Tarong Power Stations and improve the company’s competitiveness in the National Electricity Market.
“The cost of coal is a significant portion of the total cost of running the Tarong Power Stations,” Stanwell chief executive Richard Van Breda said in a public statement. “It is therefore important for us undertake these market reviews to ensure we are operating as cost effectively as possible for the benefit of Queensland electricity consumers.”