Monday, October 06, 2003 BRANDRILL has won a contract being valued at $16 million over five years at a coal mine in Queensland, and says its 51% stake in South African mining contractor Brandrill Torrex is back on the market.
Brandrill said the coal contract - which is still to be formally executed - begins on November 1 at the Ensham mine in the Bowen Basin and is "alliance based", entailing fixed and variable rates.
The mine is owned by Ensham Resources, comprising Indemitsu Kosan (85%), EPDC (10%) and Korea's LG Group (5%).
Meantime, Brandrill aims to sell Torrex sometime this year on the back of an expected improved performance from the subsidiary, which currently has 14 underground development projects.
The SA subsidiary contributed a loss of $13.5 million after tax to Brandrill's total $31 million loss in 2002/03.
After being unsuccessfully put on the market last financial year, Brandrill said last month that Brandrill Torex was expected to contribute strongly to profits this financial year.
Last week the company said its "liquidity situation remains tight". A $6.5 million debt owed to the Commonwealth Bank needs repayment by December 31, 2003, with Brandrill reducing the debt by $8.5 million in 2002/03.
BDL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
