ASX-listed Bowen Coking Coal has announced it will transition the Burton Mine Complex in Queensland to an owner-operator model, with the shift to take effect on July 1, following the expiry of its mining services contract with BUMA Australia.

The move forms part of Bowen’s broader strategy to optimise operations, reduce costs and improve flexibility as it positions itself for the next phase of growth.

“At a time when Bowen is looking to expand and deliver high-quality products at a lower cost, we have reached an amicable agreement with our mining services partner BUMA Australia not to renew our current contractual arrangements and transition to an owner-operator model,” said CEO Daryl Edwards.

“This decision reflects the strategic direction of Bowen Coking Coal to establish greater autonomy, streamline operations, and effectively address the dynamic demands of the market.”

BUMA has provided contract mining services at Burton since mid-2022, and Edwards acknowledged the contractor’s contribution during a period marked by rising input costs and labour constraints.

“We sincerely thank BUMA and its workforce for their contribution to the operations since mid-2022. Over this period, BUMA have played a significant role in delivering stable operations and a lower cost profile within a challenging industry environment where labour, fuel and other inputs have increased substantially.”

Bowen noted that the transition to an owner-operator model would be staged to ensure minimal disruption to production and a smooth handover of responsibilities. The company will partner with mining equipment supplier Emeco International to provide a fully maintained fleet solution, while drawing on Mining Pro’s production and operational expertise. Additional personnel will be recruited to support the existing site management team.

“In recent times, the Burton Mine Complex has recorded steady-state production while markedly reducing costs, leaving the business well positioned to now take responsibility for the mine plan, workforce and fleet,” Edwards said.

“Once the transition has been completed, we expect to see further improvements across the mine under a single leadership voice.”

The transition is also seen as a foundational step in Bowen’s growth ambitions, which include incorporating production from the Plumtree North, Isaac and Lenton pits into the Burton operations and refurbishing the second module at its coal handling and preparation plant (CHPP) to boost output.

“This transition is a critical first step towards our next stage growth plans to expand our Burton operations to incorporate tonnages from our Plumtree North, Isaac and Lenton pits, as well as plans to execute expansion works to refurbish the second module at our CHPP to increase production and sales,” said Edwards.

“The company is actively exploring funding solutions to support these plans.”