Bowen Coking Coal plans to shift to an owner-operator model at its Burton coal complex at the end of the month, when its contract mining services agreement with BUMA Australia expires.

The company said it would tap mining equipment supplier Emeco International to provide a fully maintained fleet and draw on mining production and operational expertise from Mining Pro.

“At a time where Bowen is looking to expand and deliver high-quality products at a lower cost, we have reached an amicable agreement with our mining services partner BUMA Australia not to renew our current contractual arrangements and transition to an owner-operator model,” chief executive officer Daryl Edwards said.

“This decision reflects the strategic direction of Bowen Coking Coal to establish greater autonomy, streamline operations, and effectively address the dynamic demands of the market.”

Mr Edwards said the transition was a critical first step towards the company’s next-stage growth plans to incorporate tonnages from the Plumtree North, Isaac and Lenton pits at the Burton operation.

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It also has expansion works in the pipeline to refurbish the second module at the Burton CHPP (pictured below right) to increase production and sales.

“The company is actively exploring funding solutions to support these plans,” Mr Edwards said.

“Our business remains committed to working closely with all stakeholders, including current contractors, suppliers, employees and community partners, to support a well-executed and successful transition.”

BUMA has provided contract mining services at the Burton complex, near Moranbah, since mid-2022.

Mr Edwards said BUMA had played a significant role in delivering stable operations and a lower cost profile in this period.

This was against the backdrop of a challenging industry environment where the cost of labour, fuel and other inputs had increased substantially, he said.