Global manufacturer Komatsu is equipping Mackay-based PIMS Group to deliver on its $425 million contract to provide underground mining services at the Millennium and Mavis Downs coal complex near Moranbah.

Komatsu said it would be providing a full-time preventative maintenance team at the mine sites to help maximise the operation of the eight pieces of equipment now on order, including two 12CM27 continuous miners, four 10SC32 shuttle cars, one feeder breaker and one multibolter.

Delivery of the Komatsu machines is due in mid-2022 to coincide with PIMS Group’s conversion of the Mavis Downs site to underground operation, which will be followed soon after by conversion of the Millennium site.

Millennium and Mavis Downs are owned by MetRes, a 50:50 joint venture between Queensland miners Stanmore Resources and M Resources. M Mining, a subsidiary of M Resources, is the joint venture manager and operator.

MetRes has initially worked to reopen the mines using auger and open-cut methods, with production of first coal already achieved in September 2021.

According to MetRes, underground expansion will be economically achieved through the mines’ existing highwalls, yielding low-ash, high-quality metallurgical coal used in the production of steel globally.

Rehabilitation of the open-cut sites will coincide with the switch to underground operations.

With underground activity, Millennium and Mavis Downs share a current predicted additional mine life of 12 years, producing 13.9 million tonnes of metallurgical coal.

According to MetRes chairperson Matt Latimore, a partnership and risk-sharing approach, together with the potential for substantial local employment opportunities, had been paramount in PIMS Group winning its bid to operate the infrastructure of both mines.

M Mining has the option of retaining all equipment at no additional cost on completion of the PIMS Group contract.

The contract is for five years but includes an option to extend the agreement to support 15-­years mine life.

PIMS’ contract on the project is its largest to date and it views it as a forerunner for extending the operating life and remediation of above-ground sites which have so far been presumed to be near the end of their productive life.

PIMS Group chief executive Richard Mills sees this operating model being utilised throughout existing Queensland coal operations, providing substantial economic and employment benefits.

Vice-president of underground soft tock for Komatsu in Australasia, Rob Rogers, said the success of the three-way venture with PIMS Group and MetRes depended on total confidence of each partner to reliably deliver in its area of expertise.

• PIMS Group is looking to fill positions for its Mavis/Millennium work – details HERE