Xstrata is taking over the mining of its Collinsville coal mine in central Queensland from contractor Thiess.

In a statement, Thiess said following a review of operations at Collinsville  the companies have entered into a transition agreement to take the mine back to an owner-operator model from August this year.

“Thiess has a strong, long-term relationship with Xstrata Coal and both companies are working together to secure a strong future,” the statement said.

Thiess said the financial impact over the next four years will be around $650 million, but the contractor may retain some work onsite after the transition but no value has been agreed as yet.