In April 2008 Ostwald Bros began working with Xstrata Coal on a civil and mining construction and haulage contract for the proposed Wandoan Coal Project.

Ostwald Bros was contracted to complete auxiliary works, sample pit and access road construction to support the pre-feasibility phase of the project.

Xstrata Coal is exploring the potential for an open-cut coal mine to be developed in the Wandoan district.

Work is ongoing with coal crushing, loading and haulage of coal to Xstrata’s Oaky Creek Mine.

The sample pit is set to provide approximately 50,000 tonnes of coal for trial washing and coal sampling. Results on the pre-feasibility study of the coal project are expected by the end of the next year.

Ostwald Bros’ transport fleet is working on the coal haulage project with all trucks equipped with satellite tracking and real time monitoring systems to allow full supervision of operations.

If approved, the project will comprise an open-cut mine, coal handling and preparation plant, train load-out, workshops, fuel, wash-down facilities and offices.

The mine is expected to produce an initial rate of 30 Mtpa run of mine coal, for export markets, with an expected mine life of 30 years.