ILN understands a rethink of geological conditions had introduced a note of caution, causing MIM management to delay their decision.
Oaky No 1 is part of the Oaky Creek complex, located 300km inland of Mackay and Rockhampton. The equipment tender is for a new set of chocks, shearer, AFC and BSL, with an estimated combined value of between $50 million and $70 million.
The equipment will be installed in a new part of the mine, known as the south-east extension, and open up about 80 million tonnes of in situ reserves. Oaky No 1 has longwalls 18, 19 and 20 yet to mine in its current workings. The purchase of new equipment has been necessitated by a reduction in seam height in the new extension.
Currently, Oaky No 1 is mining at a working seam height of 2.8-3.6m but in the new workings this reduces to 1.6m-2.5m.
Original equipment manufacturers DBT, Long-Airdox and Joy Mining Machinery are the main contenders for the major equipment to be purchased.
Oaky Creek is a joint venture between Brisbane-based MIM (75%), Sumitomo (15%) and Itochu (10%).
