Mastermyne books hit $1bn with $600m mine contract for Gregory Crinum
The hard coking coal operation will employ 180 people and produce 1.4 million tonnes per year once fully ramped up.
Mackay
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A Mackay mining contractor has been awarded a $600 million contract to operate a Central Queensland mine, lifting its post financial year 2021 order book to more than $1 billion.
In a statement to the ASX, Mastermyne announced it would operate Sojitz Blue's Gregory Crinum underground mine at Lilyvale, near Emerald.
Sojitz Blue, a subsidiary of Japanese conglomerate Sojitz Corporation, had planned to restart the mine by mid-2021.
The hard coking coal operation will employ 180 people and produce 1.4 million tonnes per year once fully ramped up.
This is on top of another 300 people employed at the Gregory open cut mine component of the operation, which restarted more than 12 months ago.
Sojitz purchased the mothballed Gregory Crinum from BMA in March 2019 for $100 million.
With the award of the Gregory Crinum contract, on top of the recently announced Aquila contract extension, Mastermyne's post FY21 order book now sits at $1.1 billion.
The project involves the re-establishment of the underground infrastructure including conveyor systems, ventilation, associated mine services, remediation works and surface infrastructure - expected to take about six months.
Following the re-establishment works, the mine will immediately transition into production and will turn out about 11 million tonnes over the life of the project.
Production is expected to start later this year.
Mastermyne chief executive Tony Caruso said the contract award marked a major milestone for the company.
"We have been working closely with Sojitz for some time after being selected as their contracting partner early in the feasibility process and we look forward to continuing to work with Sojitz and the mine management as we move into production," Mr Caruso said.
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Originally published as Mastermyne books hit $1bn with $600m mine contract for Gregory Crinum
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