Downer on a Roll - Secures 5 Mining Contracts

Downer on a Roll – Secures 5 Mining Contracts

Downer has been on a roll lately, picking up five contracts to provide mining services in Western Australia and Tasmania.

The total value of the five contracts is a tidy $250 million. Three of the contracts were won by Downer's subsidiary, Downer Blasting Services.

One contract is for up to five years, at Boddington Gold Mine in Western Australia. Downer was contracted by Newmont Asia Pacific to supply, manufacture and deliver explosives and down the hole blasting services.

In addition to that is a three and a half year services contract at Karara, also in Western Australia. Under their Karara contract, Downer has the option to pursue two separate two year contract extensions. Downer has been providing mining services at Karara since 2012.

Down in Tasmania, Downer have secured a five year contract extension at Grange Resources' Savage River site. They've been in there since 2007, so this extension will take them to a 14 year stretch.

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Downer also secured a ground support services contract for the underground mining operations at Newmarket Gold's Fosterville gold mine.

Via a joint venture with another company, Downer secured an additional contract extension. The joint venture, Waanyi ReGen, is an arrangement between Downer's ReGen business and the Waanyi Prescribed Body Corporate. The three year contract covers land and water management at the Century Mine.

Downer CEO, Grant Fenn, emphasised Downer's broad capabilities as the reason for successfully securing the contracts.

“These new and extended contracts are a clear endorsement of Downer’s broad value proposition for mining services customers which includes enhancing safety, increasing productivity and engaging the local community.”

About Downer

Downer is a hugely diversified services company. Their services cover transport, technology and communications, utilities, engineering, construction, maintenance, rail and of course mining.

With 19,000 team members, Downer is one of Australia's largest employers. They operate primarily in New Zealand and Australia, but also have operations in South America and southern Africa.

Sources: The West Australian, Australian Mining, Downer, The Advocate.

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