The value of the contract, scheduled to start on December 1, is estimated to be in the region of A$700 million (US$532 million) over a five-year term.

Greg Heylen, CEO of BGC Contracting, said that the Boggabri contract was the company’s biggest NSW win in recent years and endorsed the company’s confidence in the potential for growth in NSW.

He said: “In addition to the size of the contract, it is a significant strategic success as we seek to expand nationally into new locations and commodities, particularly in coal. I am confident that our collaborative approach of working closely with our clients will ensure that Boggabri mine can maximise its performance.”

Heylen also said that BGC Contracting was committed to supporting the people currently employed at Boggabri mine and the local community. He noted: “Recruiting locally is good corporate citizenship and an important factor to ensure the safety of people on the project, the retention of valuable skills and the smooth transition of services. These are our highest priorities.”

Steve Kovac, COO of Idemitsu Australia Resources, said that Idemitsu’s strategy for the mine’s operation had been reviewed over the past year. BGC Contracting’s track record in building long-term partnerships with its bulk-commodity clients is the best fit with the approach Idemitsu is seeking.

He explained: “BGC Contracting has demonstrated a very clear understanding of our strategy for an integrated, lean management team with shared business goals. Our businesses have a good cultural fit which will allow us to develop a strong, mutually beneficial relationship well into the future. Having the support of a partner with the capacity and willingness to work collaboratively will deliver improved operational performance, which is paramount to the continued success of the mine.”

Kovac also confirmed Idemitsu’s commitment to sourcing the required personnel from the current workforce and the local Boggabri and surrounding communities. He said: “The current workforce will have the opportunity to continue working with us at Boggabri mine into the future, if they choose to be part of the process.”