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PDF - 5.5 MB - Leighton Holdings

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<strong>Leighton</strong><br />

<strong>Holdings</strong><br />

Quarterly<br />

Update<br />

2nd<br />

Quarter 20<br />

<strong>Leighton</strong> Contractors up and running<br />

at the Sonoma coal mine<br />

The Sonoma coal mine is located in the Bowen Basin,<br />

200 kilometres north-west of Mackay, Queensland. A contract for<br />

bulk excavation and selective coal mining operations at the new<br />

project was awarded in July last year.<br />

Graham Goodwin, the Project Manager and<br />

Site Senior Executive (SSE) discusses the<br />

new project.<br />

“I’ve been working on the Sonoma project since<br />

December 2006. The Sonoma coal mine started<br />

production last year. The first overburden was<br />

moved on 16 October 2007 and we sent our first<br />

coal to the coal handling and processing plant on<br />

13 December 2007. It’s been a good start for the<br />

project and to see it come through to fruition has<br />

been a very satisfying and rewarding experience<br />

for me.<br />

“I’ve been in the coal mining industry for 25 years.<br />

I commenced my career in the coal fields of NSW<br />

as an operator and I worked my way up through<br />

the ranks to my current role as Project Manager<br />

and SSE.<br />

“Our current contract at Sonoma is for five years<br />

and is valued at around $500m, with the prospect<br />

of a further 10 year extension. The client is a joint<br />

venture between QCoal (a Queensland operator),<br />

Cleveland Cliffs (a US based iron ore miner), and<br />

two other overseas shareholders. The contract<br />

is performance based with key performance<br />

indicators (KPIs) built into it. The KPIs are firstly,<br />

safety and environment, and then production of<br />

overburden and coal.<br />

"The coal seam initially runs at a 20 degree angle.<br />

The equipment moves around 35,000 bank cubic<br />

metres (BCMs) of overburden and 30,000 tonnes<br />

of ROM coal daily. 20 million BCMs of overburden<br />

is expected to be moved each year with 5 million<br />

tonnes of ROM coal. In 2010, coal production will<br />

increase up to 6 million ROM tonnes annually.<br />

"On site <strong>Leighton</strong> Contractors has two Liebherr<br />

9350 Excavators - one on the coal and the other on<br />

overburden. In addition an Hitachi EX5500 will be<br />

mobilised to site in response to our clients request<br />

to substantially increase coal and overburden<br />

production earlier than originally planned. These<br />

excavators will be supported by fourteen 789

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