Just over two months ago, Bounty was hopeful it could negotiate a 12-month extension of the Bundoora project on news Anglo had terminated its contract at the Aquila colliery.

However, on yesterday’s news, Bounty said it had been able to offer the majority of Bundoora staff redeployment at its Chain Valley contract in NSW.

The scope of work being undertaken by Bounty at Peabody’s Chain Valley has been increased.

Bounty employees are already onsite and plant is being relocated from Queensland for the work to start today.

Bounty said mobilisation for the main contract was already underway, with production expected to start later this month.

The company said it was preparing tenders for additional contracts for work in NSW and Queensland due to start in the third quarter of this year.