The division received a notice of award to install life-of-mine infrastructure in a new coking coal mine in the Bowen Basin. The contract will begin in October 2011 and is expected to take approximately 12 to 14 months to deliver and employ 70 people at its peak.

Group managing director Tony Caruso told ILN that he would sign the contract this week and expected it to hold significant strategic value for Mastermyne Services as a cornerstone project and provide a springboard for similar contracts.

Mastermyne Services specialises in mining electrical and mechanical services including construction, maintenance and overhaul of draglines, wash plants and material handling systems.

Mastermyne Services also supplies Mastermyne's other divisions with electrical and mechanical services that were previously outsourced to other contractors and also provides an entry into open cut mine services and contracts.

It has project management capabilities and supervises all work undertaken during the installation and overhaul of equipment.

It is also able to ensure that scope of work is followed throughout the duration of the overhaul and installation and all inspection and report data is completed and passed onto the project co-ordinator with repair recommendations.

The services division ensures the quality of workmanship and working procedures and safety regulations are adhered to.

Mastermyne has also announced an update on the status of its claim for the underground continuous miner (ABM20) which was lost in the Pike River disaster in November 2010.

“Directors have formed a view that a partial or whole reversal of the impairment should be booked in the 2011 accounts, subject to verification by the auditors,” the company said.

“However, if matters are not finalised the company may only book a conservative estimate of the insurance claim receivable.”

Caruso said the company was pleased with the full year results which had exceeded its prospectus forecast for both statutory and underlying results.