Thiess secures $570m mine contract extension

Four-year contract awarded by Wesfarmers Resources.

In a disclosure to the Singapore Exchange, Leighton Finance (USA) Pty Ltd announced that Thiess has been awarded by Wesfarmers Resources a four-year contract worth $570 million to extend Thiess’ involvement in the Curragh North Coal Mine, near Blackwater in Central Queensland’s Bowen Basin.

The contract extension complements the current 10-year agreement signed in 2010 and will see Thiess continue its activities to optimise productivity in overburden removal and coal mining. Wesfarmers Resources Managing Director Stewart Butel said Thiess was awarded the scope of work extension in a very challenging environment for the industry.

“Thiess has worked collaboratively with us to review areas of efficiency and agree on a strategy that will ensure Curragh maintains its position as a cost-competitive operation,” he said. Thiess Managing Director Bruce Munro welcomed today’s announcement and paid tribute to the ongoing relationship between Thiess, Wesfarmers Resources and the Curragh mine.

“We have worked closely with Wesfarmers Resources since 2004 at the Curragh North operation and this contract extension will deliver greater value in challenging times to benefit the mine and our stakeholders,” Mr Munro said.

Leighton Holdings Chief Executive Officer Hamish Tyrwhitt noted the announcement is the second for the Group in the Bowen Basin in the space of a month, highlighting Leighton’s capabilities. “The Curragh North extension and Thiess’ $550 million Lake Vermont expansion announced last month are compelling testimony to the value proposition the Leighton Group has in the contract mining market,” Mr Tyrwhitt said.

Wesfarmers Curragh will continue to provide dragline operations and drill and blast with no change to the Ultra Class fleet provided by Thiess under the current 10-year contract.