Stanwell has started the process to take Meandu operations out to tender.
Stanwell has started the process to take Meandu operations out to tender. Barclay White

Stanwell takes mine operations to tender

STANWELL is looking for a new service agreement, and potentially a new operator, for Meandu Mine once the current agreement with the Downer Group's contract ends in 2020.

The tender is expected to open by the end of 2018 and it'll take another 12 months before Stanwell makes a decision on who will operate the mine.

Meandu Mine site manager Dan Redman said the energy market was undergoing a radical transformation and Stanwell's primary focus is to ensure the long-term future of the Tarong Power Station.

"As with any business, it is good practice to regularly review supply agreements," Mr Redman said.

"A new agreement will help to ensure Meandu maintains an efficient and competitive operation that enables the site to continue to provide local jobs and regional investment in the South Burnett for many years to come.

"As one of the largest employers in the South Burnett, Stanwell remains focussed on the safety and long-term wellbeing of its people and community and it is business as usual on-site," he said.

A key requirement of the tender will be a firm commitment to the employment of local people, including trainees and apprenticeships, indigenous employment and inclusivity.

Downer has operated the mine for the past eight years and its contract was extended in 2016.

A spokeswoman for Stanwell said the tender process was standard business practice to ensure it had the best deal on offer to provide coal for Tarong Power Station.

They expect Downer may very well apply for the new contract to management of the site.

Other large mine operators are also expected to tender for the mine.

Stanwell took over ownership of the mine in 2008. For more information visit www.stanwell.com.

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