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Minters mines million dollar contract

Minters mines million dollar contract

Stanwell Corporation has appointed Downer EDI as long-term contractor for the Meandu Mine.

Firms: Minter Ellison (Stanwell Corporation and TEC Coal)

Deal: TEC Coal, a subsidiary of Queensland Government-owned energy company Stanwell Corporation, has awarded the long-term rolling mining services contract at the Meandu Mine to Downer EDI

Area: E&R

Value: $600-$800 million

Key players: Minters was led by David Pearce (senior associate, Brisbane), with Ian Briggs and Julie Whitehead (partners, Brisbane) and Kimie Tsukakoshi (lawyer, Brisbane). Gillian Brown (partner), Darren Sumich (special counsel), Dan Williams (partner), Deanna McMaster (associate) and Nick Sayeg (senior associate) also advised. Chief legal counsel Andrew Roessel advised Downer EDI

Deal significance: "We were able to work with Stanwell and Downer to resolve a number of challenges by leveraging off the relationship-based contract framework – challenges such as the new PPS legislation, the carbon tax and the transition of a large workforce from the outgoing contractor in an unsettled industrial relations environment," said Pearce. The cost reimbursable contract, which has an initial term of five and a half years, will begin in January 2013.

Downer will provide a total mine service to TEC Coal, including mine management, planning, drilling, overburden removal, coal mining, coal processing, rehabilitation, and maintenance of mobile and fixed plant. TEC Coal will provide the majority of the required plant and equipment.

The Meandu mine, at Kingaroy in south-east Queensland, supplies coal to Stanwell’s adjacent Tarong and Tarong North power stations, and holds sufficient reserves to fuel the stations until at least 2025.  Stanwell assumed ownership of the Meandu Mine in 2007. Downer EDI is a contract miner that has been operating for more than 90 years and has an established presence in Queensland. The mining services contract at the mine was previously held by Leighton Holdings subsidiary Thiess.

 

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