INTERNATIONAL COAL NEWS

New CEO to rescue Eagle Downs contract

WDS' managing director and CEO Laurence Voyer is promising to get the $A142.8 million drift devel...

Blair Price

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As part of an annual review yesterday, WDS revealed there were performance issues.

“Over the past quarter production levels at the Eagle Downs Drift project in the Bowen Basin have been running significantly below contracted expectations,” WDS said.

“As a result the Board chose to make a substantial provision against further under-performance in the 2014-2015 financial year, which is also reflected in the FY15 forecast announced in November.”

Voyer, the former Leighton veteran who was appointed WDS MD and CEO last month, wants to know what can be done by Christmas.

“A critical mission for me is ensuring we get back on track at our Eagle Downs project where slower than expected tunnelling progress has cost the business money,” he said.

“I have a highly experienced team at the site performing a “deep dive” into all aspects of this project. I have been there myself recently and will be heavily involved in the monitoring of the project’s performance.

“A report on the situation will be with me by Christmas this year and we will be ready to act immediately on its key recommendations.”

WDS won the contract off Aquila Resources a year ago with the two circa 2km drifts expected to be finished by late 2015.

Aquila was later taken over by Baosteel (90%) and rail operator Aurizon (10%) through a $1.4 billion joint bid launched in May.

The Eagle Downs hard coking coal project is targeting completion by the first half of 2017.

The project aims to produce 4.5 million tonnes per annum of coking coal over the first 10 years of its 47-year mine life and has potential to expand to 8Mtpa through longwall top coal caving technology.

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