Sunday 20th Oct, 2019

Downer awarded $218M in contract extensions

Downer has won two mining contract extensions with a combined value of $218 million.
Sino Iron Ore

Downer has won two mining contract extensions with a combined value of $218 million.

Palabora Mining Company has renewed Downer’s $110 million contract for an additional three-and-a-half-year term, on a 12-monthly basis.

The scope of works includes the provision of mine planning, engineering, supervision and training to assist daily operations at the mine.

Downer has been providing underground mining development services at the Palabora mine since December 2016.

It was also awarded a two-year contract by CITIC Pacific Mining Management to continue provision of mining services at the Sino Iron project at Cape Preston in the Pilbara, Western Australia.

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The contract is valued at around $108 million and has an additional one-year option.

Downer CEO, Grant Fenn, said he was pleased to be continuing Downer’s relationships with Palbora and CITIC Pacific Mining.

“We are delighted to be continuing our partnerships with Palabora and CITIC Pacific mining,” Fenn said.

“Downer has a strong record of providing mining services to Palabora and working with local South African businesses to develop skills and capabilities in the underground mining sector. We look forward to continuing to deliver efficient solutions for the Palabora mine.

“We are also pleased to continue our relationship with CITIC Pacific Mining and building on our expertise and specialisation in contract mining of magnetite iron ore.”