Mastermyne has earned itself a mining services contract by Japan-based Sojitz Blue for the Gregory Crinum coal operation in Queensland – with work valued at A$660 million.

The seven-year deal for the mine’s underground element is a whole-of-mine contract that will include development of the bord-and-pillar mine. The scope includes the re-establishment of the underground infrastructure, including ventilation, conveyor systems, related mine services, remediation and surface infrastructure.

With the aforementioned slated to take six months, the contractor will immediately after re-establishment to bring the mine into production with a staged ramp-up to three mining units over the balance of the contract’s time.

Sojitz initially appointed Mastermyne for the mine’s feasibility study last year. The latter was also retained to undertake the re-entry process, which was successfully realised last October, as its mine operator.

At full production, Gregory Crinum underground will employ 180 workers, who will use a fleet provided by Mastermyne’s current fleet of miners, bolters and shuttlecars.

“The execution of our first whole of mine operations contract is a major milestone for Mastermyne and is significant in transitioning the business into a commercial model that is not only complimentary to the existing contracting model, but will provide an even greater level of earnings certainty over the long term,” said Mastermyne CEO Tony Caruso.

With the addition of the contract to its portfolio, the contractor said its order book now exceeds $1.1 billion for FY21.

Sojitz acquired the coking coal mine operation in Crinum, central Queensland, from BHP Mitsubishi Alliance (BMA) in 2019. The $100 million deal closed in March of that year.