Specialist resources services provider, Babylon Pump & Power Ltd, has secured an agreement for supply of goods and services with Premier Coal Ltd.
The agreement is for overhaul of Premier engines, supply of service exchange engines and labour to support as required. Based on quotations supplied and anticipated schedule provided, Babylon estimates the total revenue over the three-year term plus possible one-year extension to be approximately AUS$16 million.
Some key terms of the agreement include:
- The agreement is structured as a framework supply agreement and does not constitute a binding minimum commitment by Premier.
- Three-year initial term, with a commencement date of 3 January 2022.
- One-year extension by written notice by Premier.
- No fault termination by Premier with 30 days’ notice.
- Anticipated schedule included in the agreement specifies 44 engines over three-year term plus possible one-year extension.
The Board of Babylon is excited by this significant opportunity granted by Premier and looks forward to delivering on the agreement over the term.