Downer EDI Limited (ASX: DOW) announced today that it has been awarded a five-year contract extension by Millmerran Power Partners to continue providing mining services at the Commodore open cut coal mine in South East Queensland.
The contract is valued at $286 million and is set to expire at the end of August 2024.
Downer CEO Grant Fenn highlighted the importance of delivering value to clients as a crucial aspect of maintaining such long-term contracts.
He said, “We are delighted to be continuing this 17-year partnership. Downer has a strong record of providing mining services to Millmerran Power Partners and helping it to drive efficiencies across its operations. We look forward to extending our working relationship and continuing to deliver efficient solutions for the Commodore mine”.
Shares in Downer, which also owns a majority stake in Spotless Group Holdings Ltd (ASX: SPO) were down marginally following the announcement.
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The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.