02/03/2017 - 14:32

Ausdrill wins $70m Peabody contract extension

02/03/2017 - 14:32

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Mining services business Ausdrill has won a $70 million extension to its contract for work at Peabody Energy Corporation’s coal mines on the east coast.

Peabody's coal mining operations in NSW.

Mining services business Ausdrill has won a $70 million extension to its contract for work at Peabody Energy Corporation’s coal mines on the east coast.

Ausdrill subsidiary BTP Equipment received the two-year extension, and will continue to rent mining and ancillary equipment to Peabody’s coal mines located in the Bowen Basin and Hunter Valley.

BTP has been working under the contract since April 2015.

“The contract extension reflects the strong relationship that BTP has built with Peabody over recent years,” equipment services and supplies executive general manager Donald James said.

“We are delighted to secure this contract extension and continue with the rental of equipment and related services to Peabody.”

Peabody is selling its Metropolitan Colliery and a near-17 per cent stake in the Port Kembla coal terminal, both in NSW, to Perth-based South32. Although concerns over the deal have been raised by the Australian Competition and Consumer Commission.

Ausdrill shares were unchanged at $1.53 each at the close of trade.

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