Jellinbah Resources have struck a $500 million deal with construction and mining company Thiess to oversee the expansion program at the Lake Vermont Coal Mine, near Dysart in Central Queensland’s resource-rich Bowen Basin.
According to a media release featured on ASX, Thiess will perform the expansion program which will increase the coal production from 6 million tonnes to 8 million tonnes per annum over the remaining 5 years of the current contract.
Jellinbah Resources Chief Executive Officer Greg Chalmers said the owners were pleased at the prospect of expanding the mine through a flexible partnership with Thiess and dubbed the move as “essential” to the mine’s sustainable future in the competitive coal market.
“The additional production at Lake Vermont Coal Mine will ensure we maintain a profitable future for the mine. By working closely with Thiess we believe we can deliver the efficiencies required to ensure the mine remains competitive on a global scale and provide a small boost to the economy at a local state and national level,” said Mr. Greg Chalmers.
Thiess’ Managing Director Bruce Munro expressed his gratitude to Jellinbah Resources and said that their joint venture will be focusing on reducing costs and boosting productivity.
“We continue to work with our client Jellinbah Resources to reduce costs and safely improve productiveness across every aspect of the mining operations, from plant and equipment to local sourcing and empowering our people.”
“By focusing on efficiencies and productivity we can deliver sustainable production in the long term for our clients and reposition the Bowen Basin as a globally competitive producer,” Mr. Munro said.
Thiess is a wholly owned subsidiary of Leighton Holdings Limited.
The company’s Chief Executive Officer Hamish Tyrwhitt said the Lake Vermont story highlights the Leighton Group’s capability.
“Such a successful partnership sends a very positive signal to the market and demonstrates the value the Leighton Group delivers for our clients,” said Mr. Tyrwhitt.