Metarock Group’s subsidiary, Mastermyne has executed a Mining Services Agreement to become the Contract Operator at Cook Colliery for Constellation Mining, a subsidiary of QCoal Group (QCoal).
According to Metarock Group’s announcement, the 4-year contract includes a further 2-year option, with to work to commence immediately.
The Cook Colliery was acquired by the QCoal Group in mid-2020 and has been placed under care and maintenance ever since.
In July 2021 Mastermyne was selected to carry out a package of work to prepare the mine to re-commence production.
This work included recommissioning of existing underground infrastructure, overhauling of mining equipment, establishment of production panels and other associated administrative and procurement works.
Metarock said the first tranche of work has been completed and the mine is now ready to recommence production.
Under the terms of the agreement, Mastermyne will be responsible for all works associated with delivering run of mine (ROM) coal to the surface stockpile, with Constellation Mining to manage all processing, rail, shipping and marketing of the product.
Metarock CEO, Tony Caruso, said the project will produce about 4 million tonnes of ROM coal over 4 years across three production panels with the contract generating an average revenue of some $70 million per annum.
“We are pleased to have executed this contract with QCoal and to be bringing Cook Colliery back into production at a time when we are experiencing record coal prices,” he concluded.
