SYNTECH RESOURCES CONTRACT COULD NET $1B

Written on the 13 April 2010

SYNTECH RESOURCES CONTRACT COULD NET $1B

PRIVATE Brisbane coal company Syntech Resources has awarded a $190 million operations contract to the ASX-listed Macmahon Holdings Limited (MAH) that could be worth up to $1 billion annual revenue in three years time.

Macmahon will operate Syntech’s Cameby Downs mine in the Surat Basin for three years, with production expected to commence in July.

“Production will come through the Port of Brisbane, setting us forward over that three years to reach 10 million tonnes annually in stage two, when we plan to go through Wiggins Island in Gladstone,” says Syntech CEO Darian Hielscher.

“Current export prices for thermal coal are $100 per tonne so if that stays the same we’re looking at $1 billion a year.

“We’ve got strong partners and strong shareholders, including our main shareholder Goldman Sachs, who has been following a program of investment in coal assets around the world.”

He cites the deal with Macmahon as a major milestone in the development of the Cameby Downs site.

“In partnership with Macmahon, we look forward to working with local communities to bring sustainable prosperity to the Surat Basin and Western Downs region,” he says.

“With production due to commence in July 2010 and the first coal train to be loaded in October 2010, Cameby Downs signifies the emergence of the Surat Basin as a major source of high quality thermal coal, and delivers on our commitment to generate employment opportunities for the surrounding communities.”

Hielscher says the option to go public has not been an agenda of the Syntech board.

MAH shares rose 0.7 per cent to 75 cents following the announcement today.


Latest News

FURNITURE RENTAL GROUP TO PAY $100,000 TO VULNERABLE REGIONAL CUSTOMERS

WHITE goods and furniture rental company, The Rental Guys, will refund regional customers $100,000 after the Austr...

MYER SHARES TUMBLE AS PROFITS HIT HARD BY RETAIL FAILURES

MYER'S (ASX: MYR) full year profit will be largely wiped out because of weak trading conditions and the strugg...

BELLAMY'S SHARES TANK AFTER TRADING HALT IS LIFTED

SHARES in infant formula maker Bellamy's Australia (ASX: BAL) plummeted 11 per cent in early trade on Thursday...

HOW A FORMER BEAUTY THERAPIST SCORED AN INVESTMENT FROM SHARK TANK'S STEVE BAXTER

WHILE most teenagers are busy getting through their homework and social media, Jade Castle was already running a b...

Related News

FURNITURE RENTAL GROUP TO PAY $100,000 TO VULNERABLE REGIONAL CUSTOMERS

WHITE goods and furniture rental company, The Rental Guys, will refund regional customers $100,000 after the Austr...

MYER SHARES TUMBLE AS PROFITS HIT HARD BY RETAIL FAILURES

MYER'S (ASX: MYR) full year profit will be largely wiped out because of weak trading conditions and the strugg...

BELLAMY'S SHARES TANK AFTER TRADING HALT IS LIFTED

SHARES in infant formula maker Bellamy's Australia (ASX: BAL) plummeted 11 per cent in early trade on Thursday...

HOW A FORMER BEAUTY THERAPIST SCORED AN INVESTMENT FROM SHARK TANK'S STEVE BAXTER

WHILE most teenagers are busy getting through their homework and social media, Jade Castle was already running a b...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter