Thiess wins Ukhaa Khudag coal mine contract extension

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CIMIC Group’s global mining contractor Thiess has won a four-year contract extension by Energy Resources to continue mining operations and maintenance delivery at the company’s Ukhaa Khudag (UHG) coal mine in Mongolia’s south Gobi Desert.

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The announcement comes just 24 hours after Thiess revealed that it has extended its business relation with mining giant Glencore by agreeing to continue to operate the company’s Mt Owen coal mine in the Hunter Valley.

CIMIC Executive Chairman and CEO Marcelino Fernández Verdes said the contract extension complements the current eight year agreement signed in 2008, adding that Thiess will continue  to oversee all mining and maintenance operations at the mine until 2022.

“It demonstrates Thiess’ ability to deliver world class mining solutions to our clients across our global platform, irrespective of location,” Mr Fernández said in a statement.

Thiess Managing Director Michael Wright said the extension at UHG coal mine highlighted Thiess’ strong performance at the mine since it started in 2008.

“We are delighted to extend our partnership with Energy Resources LLC and to continue our focus on delivering cost efficiencies and innovation at the UHG mine,” Mr Wright said.

“It is the quality of our people, and their commitment to safety and operational efficiencies that drive value for our client Energy Resources.”

The Ukhaa Khudag coal mine is the most remote mine site in the Thiess global mining portfolio. The company is responsible for all mining operations at the mine,  including pit de-watering, drill and blast, removing overburden, loading and hauling coal, mine planning, engineering and fleet operation and maintenance.