Mining Contact Operate Tender

Contract Awarded for mining services contact to operate the Gregory Crinum Underground Mineundertake a feasibility study focusing on the development of a high productivity bord and pillar mining operation. In parallel Mastermyne were also engaged as the mine operator to undertake the re-entry process. The underground mining area was successfully re-entered in late October 2020 with no issues encountered. Mastermyne has continued as the mine operator whilst Sojitz finalised internal approvals.The project scope includes the re-establishment of the underground infrastructure including conveyor systems ventilation associated mine services remediation works and surface infrastructure all of which is expected to take approximately 6 months. Following the re-establishment works the mine will immediately transition into production with a staged ramp up to three bord and pillar mining units. The underground mine will produce approximately 11 million t run of mine ROM of coal over the life of the project. Mining production is planned to commence later in 2021.The contract term is 7 years with 6 months for the re-establishment phase followed by 6.5 years in the mining production phase. Total contract value is expected to be in the range of AUS600 AUS660 million. At full production the underground mine is expected to employ 180 full time personnel. Mastermyne will provide underground mining equipment from its current fleet including three bord and pillar miners multi bolters and shuttle cars along with a range of ancillary production equipment to support the operation. The contract is expected to deliver on average AUS80 AUS100 million revenue per annum once in full production.