Action Drill & Blast has been associated with the Middlemount project since the mine opened where its service provision included both drill and blast and explosive supply.
The new contract with Middlemount Coal will provide the same services excluding the supply of explosives which will now be provided by the client.
NRW CEO Jules Pemberton said: “We are pleased that Action Drill & Blast has been able to secure this extension with Middlemount Coal, building on a successful relationship that has been in place since 2011.
“The contract ensures continuity of work for all ADB staff and drilling assets currently deployed on site.”
The Middlemount mine is an open-cut coal mine located approximately 90km north-east of Emerald and some 7km west of the township of Middlemount in Queensland's Bowen Basin.
NRW grew its forward order book during the first half of the current financial year to $780 million with the help of a $40 million contract to supply drill and blast services to Stanmore Coal’s Isaac Plains coal mine in Queensland.
The order book includes work for delivery during the second half of FY16 of around $144 million which is in line with NRW’s 2016 full year revenue estimate of $300 million, according to Pemberton.
“I am pleased to report that the business has stabilised following the significant challenges we faced in 2015. Our focus on the successful delivery of our current projects and cost reduction measures has contributed to the EBITDA result for the six month period,” he said.
“This solid operating performance has also assisted the business in achieving agreement on a complete debt rescheduling package with our existing banking group. In broad terms, all debt due as at April 2016 will be repaid in equal installments over a 33 month period ending December 2018.
“The agreement reduces current debt obligations of $70 million due to be paid in the next twelve months to $42 million under our revised terms and allows NRW to operate in an environment where debt obligations and current operating cashflows are well aligned.”
