BGC Contracting Awarded $700M NSW Coal Contract


Boggabri Stock Option


Idemitsu Australia Resources (IAR) and BGC Contracting Pty Ltd are very pleased to announce that BGC Contracting has been awarded the contract to deliver mining and equipment maintenance services at the Boggabri open-cut coal mine in New South Wales.

The value of the contract, scheduled to start on 1 December this year, is estimated to be in the region of $700 million over a five-year term.

BGC Contracting Chief Executive Officer Greg Heylen said the Boggabri contract was the company’s biggest NSW win in recent years and endorsed the company’s confidence in the potential for growth in NSW.

“In addition to the size of the contract, it is a significant strategic success as we seek to expand nationally into new locations and commodities, particularly in coal,” Mr Heylen said.

 “I am confident that our collaborative approach of working closely with our clients will ensure that Boggabri mine can maximise its performance.” Mr Heylen also said that BGC Contracting was committed to supporting the people currently employed at Boggabri Mine and the local community.

“Recruiting locally is good corporate citizenship and an important factor to ensure the safety of people on the project, the retention of valuable skills and the smooth transition of services.  These are our highest priorities.”
 

Idemitsu Australia Resources Chief Operating Officer Steve Kovac said that Idemitsu’s strategy for the mine’s operation had been reviewed over the past year. BGC Contracting’s track record in building long-term partnerships with its bulk-commodity clients is the best fit with the approach Idemitsu is seeking.

“BGC Contracting has demonstrated a very clear understanding of our strategy for an integrated, lean management team with shared business goals. Our businesses have a good cultural fit which will allow us to develop a strong, mutually beneficial relationship well into the future.”

“Having the support of a partner with the capacity and willingness to work collaboratively will deliver improved operational performance, which is paramount to the continued success of the mine.”

Mr Kovac also confirmed Idemitsu’s commitment to sourcing the required personnel from the current workforce and the local Boggabri and surrounding communities. “The current workforce will have the opportunity to continue working with us at Boggabri Mine into the future, if they choose to be part of the process,” he said.
 

Boggabri Coal Operations and BGC Contracting will provide details of specific employment opportunities as soon as possible, including how those who would like to work with the company can register their interest.