Downer wins two year Meandu mine contract extension

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Downer EDI Limited has signed a two year, $250 million extension to its contract for the provision of mining services at Stanwell Corporation’s Meandu mine in South East Queensland, which delivers approximately 5.5 million tonnes of product coal per year to the adjacent Tarong and Tarong North power stations.

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Downer has been providing mining services at Meandu since January 2013 and the contract extension will see the company provide these services until June 2020.

The Chief Executive of Downer, Grant Fenn, said the extension reflected Downer’s strong performance and its ongoing commitment to deliver cost savings and operational improvements at the mine.

In addition to the Meandu contract extension, Downer also signed a Technical Services Agreement (TSA) with Adani Enterprises Limited (AEL) for the provision of mine planning, design and project execution services for the AEL coal mines in India.

Mr Fenn said the signing of the TSA builds on the excellent relationship between Downer and Adani and opens an opportunity in a new market for the Downer Group.

“The TSA has an initial value of $2 million, takes effect in July 2016 and has an initial term of 12 months,” he said.

“The services include technical and operational support for existing AEL coal mines and technical review of the bids for the Indian coal block auction.”