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Berrima closure to cost Delta SBD $8 million in lost turnover

UNDERGROUND coal mine contractor Delta SBD will lose $8 million of revenue this financial year as...

Lou Caruana

The company, which paid off $11 million debt off its balance sheet last month, said it was assessing the implications of the Boral decision for the 38 full-time employees on the site.

“Delta SBD has been advised by Boral that Boral will transition mining operations at its Berrima Colliery into ‘care and maintenance’,” it said in a statement.

“Production is to cease this week and the transition to care-and-maintenance status will then occur over approximately four weeks.”

Boral has advised that its decision to go to care and maintenance at the mine is the result of “uncertainties arising from the NSW planning system” and the need to reduce costs, with a flat cement sales outlook.

Delta SBD was appointed to manage the whole of mine operations for Berrima in 2009 until June 30, 2015, and will continue to manage the care and maintenance of the colliery.

Berrrima was Delta SBD’s second-largest client after Whitehaven Coal’s Narrabri mine, representing a significant part of its turnover in the financial year 2013.

Delta SBD had been anticipating a tough year in contracting and has been reigning in its debt in preparation.

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