Meandu Mine pays A$600 million to extend Downer contract

  • Jan 24, 2020
  • Kitco

Downer EDI has been reappointed as mine contractor of Meandu Mine, under a new five-year contract with Stanwell.

Stanwell announced the extension today in a news release. Australian Mining reported that the contract was worth about $410 million (A$600 million).

The Meandu Mine is the largest supplier of thermal coal in southern Queensland. The Tarong and Tarong North power stations are situated near the mine.

“Over the next five years, significant changes will occur within the National Electricity Market and it is important we are in a position to respond to these changes,” said Stanwell Chief Executive Officer, Richard Van Breda. “The cost of coal is a significant portion of the total cost of running the Tarong power stations. It is therefore important for us undertake these market reviews to ensure we are operating as cost effectively as possible for the benefit of Queensland electricity consumers."