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Toowoomba producer locks in Adani quarry contract

Construction materials producer Wagners has secured a $35 million contract to build and operate a quarry that will supply material to Adani’s Carmichael project for the next years.

The ASX-listed Toowoomba company will manage the South Back Creek Quarry for the Indian energy giant as Adani forges ahead with its $2 billion thermal coal mine and rail project in the Galilee Basin, approximately 160km north-west of Clermont, Central Queensland.

Wagners will deliver quarry materials for supporting infrastructure on the mine and rail network, such as roads, camps, pads, dams and mine civil works.

According to the Australian Financial Review, Wagners plans to hire about 40 people. It would immediately commence works for the first stage, worth about $17.5 million, which will involve the extraction and supply of 735,000 tonnes of materials for the next 15 months.

It will begin a second stage of works, also worth $17.5 million, once it secures a “notice to proceed” from Adani in late 2020 or early 2021, it was reported, with the lifetime of the project expected to be five years.

Carmichael Project director David Boshoff said Wagners is renowned for its expertise in developing and operating hard rock quarries. The company itself commenced quarry operations 25 years ago to support its own pre-mixed concrete business.

Boshoff said it was reassuring to have Wagners onboard, given the company was a long-term partner of the project.

“Wagners, along with many of our other contractors, are proof in point of the exceptional standard of expertise that our Queensland resources industry has to offer,” Boshoff said.

“When it comes to delivering mining projects efficiently and in line with strict environmental requirements, Queensland businesses are top of the game worldwide, and we are proud to have companies like Wagners working with us to ensure our project is also delivered to this high standard.”

Single extraction face

According to a 2013 Environmental Impact Statement, the South Back Creek Quarry will use a single quarry face that progressively extracts in a southerly direction. It is one of several operations that will supply the overall project.

Material will be removed from the quarry face with an excavator loading into a jaw, followed by a suitable secondary and tertiary screening and crushing process.

Stockpiling of the material will generally occur in a dedicated stockpiling and processing area to the east of Elgin Road. The quarry is expected to supply the project on a short-term basis and is in close proximity of rail corridor (19km) to minimise haulage requirements.

The announcement follows Martinus being awarded a $100 million-plus rail laying contract from Adani and Decmil receiving a more than $40 million contract to build rail camps, both being delivered out of Rockhampton.

“We have more than $500 million in contracts now awarded for the Carmichael Project and we are reaching out to all corners of the state to help us deliver them,” Boshoff said.

Quarry contacted the Wagner Group for further comment but did not receive a statement before deadline.

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