Bounty, through 51% owned subsidiary InCoal, will mine 500,000 tonnes of thermal coal from the Irondale Seam. Mining will begin August with completion set for June 2006.

The Ivanhoe mine has been idled since March 2004.

Bounty was able to secure the Ivanhoe project because of its expertise in low profile coal seam mining. The Irondale Seam ranges in height from 1.5-1.8m. Consequently, standard underground mining equipment is unable to economically mine the seam because of excessive roof and floor dilution.

“A significant component of the Bounty business strategy is the low profile mining equipment and expertise. We see a clear window of opportunity to dominate this area of underground coal mining within Australia,” Bounty chairman Colin Knox said.

“Our low profile equipment and expertise is the reason we secured the Ivanhhoe contract, as well as our central Queensland assignment.”

InCoal will use Bounty’s specialised low profile equipment bought in from the US. Equipment includes a Joy 14 CM15-11CX miner, DBT 488 scoop, Roof Ranger 11 roof bolter, Stamler Feeder breaker, and three Joy shuttle cars.

A two-month delay has been put on the project as the equipment is still on assignment at a central Queensland mine. Bounty is still in negotiations on a long-term assignment at the central Queensland colliery, as well as a contract at the NRE No. 1 underground colliery at Wollongong.