CQ firm seals $300 million mining deal
A $300 MILLION contract will secure more than 350 regional jobs for the next three years through the Mastermyne Group.
The homegrown mining services company confirmed the renewal of an existing umbrella contract, servicing Anglo American's Moranbah North and Grosvenor mines, through the Australian Stock Exchange today.
Chief executive officer Tony Caruso said the contract would continue a 17-year working relationship between the companies and include roadway development, conveyor installation, longwall support and servicing ventilation structures throughout the two mines.
"These projects are fully sourced. What that means is that, for the staff we have between the two operations, basically they've got security of employment for the next three years," he said.
"We will look at putting some more staff on to meet the operational needs of the mines.
"The numbers will go up about 10 per cent under the new contract."
Mr Caruso said the benefits of the renewed contract would flow on to Mastermyne's local supply chain.
"We do all our stuff locally, we keep all our work here local, so it means that the work is going to stay in Mackay and around Mackay," he said.
ASX documents show the contract commenced last week and is expected to earn the company between $250-$350 million over the three-year term.
At the end of the term, Anglo American has a two-year extension option.
"The continuation of this contract reinforces Mastermyne's strong standing and value proposition in the sector and demonstrates the robust outlook for metallurgical coal," Mr Caruso said.
"Moranbah North and Grosvenor mines supply high grade metallurgical coal to the international market for steel production, and we are pleased to support their successful operation
Based out of Mackay since 1996, Mastermyne employs more than 1000 people and is expected to turn over close to $300 million in the current financial year.
The company has an existing $95 million contract with Anglo American to support its Aquila project in the Bowen Basin.