Bounty, through 51%-owned subsidiary InCoal, has been undertaking mains development in the German Creek coal seam at the German Creek Colliery in central Queensland since June 1995.
Work on the contract, for which InCoal is paid at a rate per metre advanced, is due to be completed on February 28 next year.
While the German Creek seam work dries up, the company will continue operations at the mine in the 1.6m high Aquila seam.
InCoal has begun work on the three-year contract, commencing pre-development of the mining area this month with reinstallation of conveyor belts the major work item.
InCoal will begin coal production work within the next two to three weeks. The company will employ thin seam equipment including a Joy14CM15 low profile continuous miner, four DBT Long Airdox battery-powered Una-Haulers, a Fletcher Roof Ranger low profile roof bolter, a DBT Long Airdox battery powered scoop and a Stamler low profile three-way dumping feeder breaker.
InCoal plans to replace the Una-Haulers and feeder breaker with a Stamler 42-inch continuous haulage system about March next year. Use of the unit is budgeted to increase the mine production rate by 50%, to more than 750,000 ROM tonnes per annum.