FUTURE SECURED: Downer EDI have won the competitive tender for the Meandu Mine for another five years. Photo: File
FUTURE SECURED: Downer EDI have won the competitive tender for the Meandu Mine for another five years. Photo: File

Future of Meandu Mine decided

AFTER a competitive and rigorous 12-month tender process, Downer EDI has been reappointed as mine contractor of Meandu Mine under a new five-year contract with Stanwell.

Stanwell chief executive Richard Van Breda said that while the new contract delivered substantial benefits to both Stanwell and Downer EDI, the arrangement would also result in reduced fuel costs for the Tarong power stations.

He said it would improve the competitiveness of the power stations in the National Electricity Market and benefit all electricity consumers.

“Over the next five years, significant changes will occur within the National Electricity Market and it is important we are in a position to respond to these changes,” Mr Van Breda said.

“The cost of coal is a significant portion of the total cost of running the Tarong power stations.

“It is therefore important for us undertake these market reviews to ensure we are operating as cost effectively as possible for the benefit of Queensland electricity consumers.

“After undertaking a rigorous tender assessment process, Stanwell selected Downer EDI for its ability to deliver the best combination of safety, environmental, community and commercial outcomes for Stanwell and Meandu Mine over the long-term.

“Downer’s reappointment supports the long-term future of Meandu Mine and the Tarong power stations and enables the site to continue to provide local jobs and investment in the South Burnett and Toowoomba regions.

“In recent years, we have invested in new haul trucks, excavators, ancillary fleet, dragline overhauls, infrastructure and enabling technology.

“Our ongoing investment underpins improvements in the productivity and efficiency of Meandu Mine, directly contributing to the continued viability of the Tarong power stations.”

Mr Van Breda said the new agreement with Downer would start in July 2020 following a transition process.

“Downer EDI has provided mining services at Meandu Mine since 2013,” he said.

“We will use the period between now and the commencement of the new contract to build on lessons learnt between Stanwell and Downer over the last seven and a half years.

“The transformation process will be a critical step in effecting real change in the way we do business together.”