DOW
19/12/2014 13:00
GENERAL
PRICE SENSITIVE
REL: 1300 HRS Downer EDI Limited
GENERAL: DOW: Downer receives Letters of Award from Adani Mining Pty Ltd
Media/ASX and NZX Release
19 December 2014
DOWNER RECEIVES LETTERS OF AWARD FOR
CARMICHAEL COAL MINE CONTRACTS
Downer EDI Limited (Downer) today announced it had received two Letters of
Award from Adani Mining Pty Ltd (Adani) advising of its intention to enter
into contracts for the provision of mining services and the construction of
mine infrastructure at the Carmichael Coal Mine in the Galilee Basin in
Central Queensland. The contracts are expected to have a combined value in
excess of $2.0 billion over seven years.
Under the five-year mining services contract, with two additional one-year
options, Downer will be responsible for:
- statutory management and mine operations;
- drilling and blasting; and
- load and haul of waste and coal.
Under the mine infrastructure contract, Downer will be responsible for the
engineering, procurement and construction of on-site infrastructure and
preparatory civil works.
The capital for the major fleet for the mining services contract will be
provided by Adani.
Both Letters of Award are subject to the parties executing binding contracts
which would be followed by pre-production and planning in early 2015 with
mine infrastructure construction commencing in the fourth quarter of 2015.
First mining is scheduled for the second quarter of 2016 and first coal in
2017.
Adani Australia Country Head and CEO Jeyakumar Janakaraj welcomed today's
announcement, the latest milestone in Adani's prompt transition from the
approvals to the build phase of the company's mine, rail and port projects.
"The Carmichael mine lies at the heart of these projects which will deliver
vital export opportunities for Queensland, 10,000 jobs, $22 billion in taxes
and royalties to be invested right back into frontline services across our
State, and crucial work opportunities for small and medium sized businesses.
This partnership with Downer reflects the clear confidence that tier one
firms have in Adani's projects and we welcome the chance to work with such a
respected, proven partner on this critically important task," Mr. Janakaraj
said.
"In selecting Downer as the mining services contractor, we are confident that
not only we are well placed to meet our longstanding first coal guidance of
2017 but that we are one step closer to our goal of building a long-term
future with Queensland," added Mr. Janakaraj.
Adani's mine, rail and port projects encompass the high quality,
cost-efficient Carmichael mine, near Clermont, both the Carmichael and North
Galilee Basin Rail, Queensland's first standard gauge line which will help
open up the basin by linking the mine to the port of Abbot Point, and the
existing Terminal One and soon to be constructed Terminal Zero at Abbot
Point, near Bowen.
The Chief Executive Officer of Downer, Grant Fenn, said the Adani mining
services contract would be one of the largest of its type signed in Australia
in recent years.
"We're very much looking forward to working with Adani at the Carmichael Coal
Mine, which is expected to become the largest thermal coal mine in
Australia," he said.
For further information please contact:
Michael Sharp, Group Head of Corporate Affairs and Investor Relations +61
439 470145
Luke Thrum, Manager Investor Relations +61 459 828720
Downer EDI Limited (www.downergroup.com) provides comprehensive engineering
and infrastructure management services to the public and private Minerals &
Metals, Oil & Gas, Power, Transport Infrastructure, Telecommunications, Water
and Property sectors across Australia, New Zealand and the Asia Pacific
region.
End CA:00259198 For:DOW Type:GENERAL Time:2014-12-19 13:00:52