Contractor punts on Blair Athol
BLACKWATER contractor takes skin in the reopening of mine.
Wednesday 19 October 2016
Blackwater based Link Mining is remaining tight lipped about their decision to buy into the re-start of the Blair Athol mine near Clermont.
The mining contractor has not yet responded to enquiries from Shift Miner about the rationale for paying nearly $12 million to the mines prospective owner Terracom, for the privilege of becoming the primary mining contractor for the next five years.
The contracting arrangement will not take effect at Blair Athol until the mining lease is transferred to Terracom, which in turn, won’t happen until they get final approval from the State Government to buy the mine from Rio Tinto.
According to TerraCom Executive Chairman Cameron McRae, the 5 year deal with Link Mining will cover all operational aspects.
“TerraCom and Link Mining are now finalising a detailed mobilisation and integration plan which will ensure a seamless transition from the management of the BACJV to the TerraCom & Link Mining team,” he said.
“A key element of the contract is the provision through Link Mining of $11.6 million.
“$4.1 million will be paid to TerraCom for general working capital requirements, and $7.5 million will be paid for upfront recommencement mining and beneficiation costs.
“The provision of the funding has resulted in Link Mining paying for all material mining and beneficiation recommencement costs, thereby reducing Terracom’s exposure substantially for recommencement cost activities.”
Link Mining has a two-decade long history in the Central Queensland coal sector.
Originally known as CE Marshall & Sons (CEM), it was formed in 1997 with a contract to haul 1.4 million tonnes of coal a year at Yarrabee Mine. Three years later they won a topsoil removal contract which lead to further coal removal, rehabilitation and bulk pre strip removal contracts.
According to Link Mining Services, by 2003 CEM was the primary contractor of choice at BMA Blackwater Mine and by 2007 they employed 350 people.
In 2007 the business was purchased by John Holland Mining services on a Walk in Walk out Basis.