Meandu Mine looks to the future

22 January 2020

Downer EDI has been reappointed as mine contractor of Meandu Mine under a new five year contract with Stanwell. The deal follows a competitive and rigorous twelve-month tender process.

Stanwell Chief Executive Officer, Richard Van Breda, said that while the new contract delivers substantial benefits to both Stanwell and Downer EDI, the arrangement will result in reduced fuel costs for the Tarong power stations, which improves the competitiveness of the power stations in the National Electricity Market and benefits 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 commence in July 2020 following a transition process.

“Downer EDI has provided mining services at Meandu Mine since 2013,” Mr Van Breda 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.”