The contractor expects $A100 million in revenue over the three years and to employ more than 250 personnel, with most already mobilised at the Oaky North and Oaky No1 longwall mines.
“This contract builds on the previous two years experience at site and will enable WDS to continue the implementation of a range of continuous improvement strategies developed in conjunction with Xstrata Coal during this time,” WDS chief executive officer Terry Chapman said.
“We are pleased with the tenure of the project and look forward to continuing and building upon our relationship with Xstrata Coal.”
The contract also indicates that Xstrata is making sure its Oaky longwall mines continue to shine in the sector’s production leaderboard.
Oaky North is the leading longwall mine in the country with 9.69 million tonnes run of mine production for the 2009-2010 financial year.
When including 4.3Mt of ROM production from Oaky Creek No1, the Oaky Creek Coal Complex nearly produced 14Mt in the recent financial year.
WDS shares closed up 10% or 6.5c to 69.5c yesterday afternoon.