Downer has been awarded a four-year extension to their contract with Karara Mining, which will last until March 2022.
The additional work for the Karara contract extension will be worth approximately $350 million, and Downer CEO Grant Fenn said he was pleased with the development of the company’s ongoing relationship with Karara Mining and the new contract.
Mr Fenn called the extension an “…endorsement of Downer’s strong safety and productivity performance”, and said the company looks forward to bringing even more value to Karara Mining’s operations by enhancing safety, increasing productivity and reducing operating costs.
Karara Mining is a joint venture between Anshan Iron & Steel Group (China’s second largest producer of steel, also known as Ansteel) and Gindalbie Metals. Downer set up the mine’s infrastructure and provided drill and blast services along with loading and hauling ore and waste.
Earlier this year the Karara mine faced tough times and the project hung in the balance as Ansteel announced that it was reconsidering its position due to the industry and economic downturn. The joint venture worked furiously to lower the costs of the project to prevent the company from walking away.
Downer has had a great few months, after also winning a two year extension for its mining services at the Meandu coal mine, owned by the Stanwell Corporation, worth an estimated $250 million and also extended into 2020.
Downer began operating at Meandu in January 2015 and was originally due to finish in June 2018. The mine provides 5.5 million tonnes of coal to the Tarong North and Tarong power stations each year.
Downer also signed a Technical Services Agreement with Adani, and will provide the planning, design and project execution services for the company’s mines in India, along with technical and operational support,for Adani’s bids for the coal block auction in India.