Thiess’ mining engineering, operations and plant expertise will be applied to increase production from 6 million tonnes to 8Mtpa, increasing the annual capacity of the mine over the remaining five years of the current contract.

Jellinbah Resources CEO Greg Chalmers said the capacity of the mine would be extended through a flexible partnership with Thiess.

The partnership was essential to the mine’s sustainable future in a very competitive metallurgical coal market, Chalmers said.

“The additional production at Lake Vermont Coal Mine will ensure we maintain a profitable future for the mine,” he said.

“By working closely with Thiess we believe we can deliver the efficiencies required to ensure the mine remains competitive on a global scale and provide a small boost to the economy at a local, state and national level.”

Thiess managing director Bruce Munro said the contractor would continue to work with Jellinbah Resources to reduce costs and safely improve productivities across every aspect of the mining operations.

“By focusing on efficiencies and productivity, we can deliver sustainable production in the long term for our clients, and reposition the Bowen Basin as a globally competitive producer,” Munro said.

Lake Vermont’s first shipment was in February, 2009. Jellinbah Group appointed Thiess Mining as the operators of the Lake Vermont mine. The mine is an open cut operation, with overburden drilling and blasting followed by conventional removal with truck and shovel and dozer push.

Lake Vermont produces hard coking coal and low volatile PCI coal.

Jellinbah Group has a 70% interest in the mine, with Marubeni Coal, Sojitz Coal and AMCI each holding 10% interests.

In 2011, Jellinbah Group commenced the expansion of its Lake Vermont mine to an 8Mtpa operation. As part of the expansion, a duplicate CPP was constructed by the Thiess Sedgman Joint Venture and completed in late 2012.

Leighton Holdings chief executive officer Hamish Tyrwhitt said the Lake Vermont story highlights the Leighton Group’s capability.

“Such a successful partnership sends a very positive signal to the market and demonstrates the value the Leighton Group delivers for our clients,” Tyrwhitt said.

Lake Vermont Mine is located near Dysart and product coal is hauled by rail to the Port of Gladstone and Dalrymple Bay Coal Terminal.