Services giant halts mine business review over COVID-19
A BOWEN Basin mining services supplier has suspended a review of its mining business due to the COVID-19 pandemic.
In August, Downer Group announced it was undertaking a review of its mining business, including a potential sale.
In an ASX announcement today, the group revealed that review had been halted.
“The review process relating to (Downer’s) mining business, including a potential sale, had been suspended due to the extraordinary market volatility caused by the COVID-19 pandemic,” the announcement said.
“The process in relation to the potential sale of Downer’s laundries business is continuing and Downer will keep the market informed.”
Downer chief executive Grant Fenn said despite this, the mining business was performing well.
“As we said when we announced the portfolio review, Downer’s mining business is a leader in Australia with a proven track record and it is well positioned to build on its strong market position and pipeline of work,” Mr Fenn said.
Downer is a leading provider of mining services in Australia and its extensive Queensland operations including the Blackwater, Goonyella, Commodore and Meandu mines.
In October, Downer was awarded a two-year contract, valued at $200 million, to provide mining and related services at BHP Billiton Mitsubishi Alliance’s Goonyella Riverside coal mine.