BHP Has Awarded Downer a $600 Million Mining Services Contract


Downer has been awarded a three year $600 million mining services contract at BHP-Mitsubishi Alliance’s Blackwater Mine in Queensland.


The scope of works covered by the contract between Downer and BHP-Mitsubishi Alliance includes overburden removal and haulage, equipment maintenance and drilling services.

This contract is the consolidation of two existing contracts Downer has with the BHP-Mitsubishi Alliance and will have no material value for Downer.


Blackwater Coal Mine

Blackwater Coal Mine is owned and operated by the BHP-Mitsubishi Alliance and has been operational since 1967 after it was established by the Utah Development Company. Since then, Blackwater Coal Mine has produced an estimated 450 million tonnes of coal.

At 80 kilometres in strike length, it is one of the longest coal mines in the southern hemisphere. It is located in Central Queensland, 24 kilometres south of Blackwater and 315 kilometres from the port at Gladstone. Blackwater mine is operated as an open cut mine and it produces medium volatile weak coking coal and medium volatile hard coking coal.

The mine produces 14 million tonnes of coal annually. It uses six draglines to remove the overburden and two fleets of shovels and trucks which use front-end loaders, conveyors and spreaders. The mine also utilises a 56 cubic metre rope shovel along with eight 300 tonne rear dump trucks and an 18 cubic metre hydraulic excavator which loads a fleet of seven 180 tonne rear dump trucks.



Source: MiningLink, BHP-Mitsubishi Alliance, News Ltd

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