Thiess begins longwall mining at Southland

LAST week contractor, Thiess mining restarted coal production at the Southland mine, after completing a $4.5 million remediation program at the mine.

Staff Reporter

Thiess was appointed to replace Colrok after it went into voluntary administration in January. In its March quarterly report, Southland owner Gympie Gold said Thiess would produce 3.2 million tonnes of coal from the next two longwalls (SL2 and SL3) under a performance–based contract.

 

The contract is at a guaranteed maximum price with a benefit sharing formula if performance is above expectations, Gympie said.

 

Contract rates have been set at guaranteed maximum price per tonne of run-of-mine production, per metre of development advance and on a lump-sum basis for the initial remediation works.

 

“Discussions are fairly advanced for a long term contractual relationship that will extend beyond the current SL2 and SL3 contract of work and focus on optimising expanded operations.”

 

Gympie said most of the next 12 months production was already allocated to customers at prices 20% above the previous year.

 

Meanwhile, Gympie has lodged damages claims for $39 million against previous coal contractor Colrok and received counter-claims for $21 million.