$186m contract for Theiss Sedgman JV

Boggabri Coal has awarded the Thiess Sedgman Joint Venture a $186 million contract to design and construct a Coal Handling and Preparation Plant (CHPP).

The CHPP will support Boggabri’s mining operation expansion in the Gunnedah Basin in New South Wales.

Boggabri Coal is expanding the annual production to 6.9Mt. The open cut coal mine is located 17 kilometres north east of Boggabri in north-west NSW.

The contract has a direct value to Leighton Holdings of $124 million through its wholly owned subsidiary Thiess and its 33 per cent stake in Sedgman.

Thiess managing director Bruce Munro said the expansion is an indication of confidence in the coal sector’s future by Boggabri and its parent company Idemitsu Australia Resources.

“The contract recognises the specialised capability of TSJV and is a tribute to the great relationship established between Thiess Sedgman and Boggabri Coal.

“The project further cements our position as the leading provider of ore and coal handling processing facilities,” Munro said in a statement.

Leighton Holdings’ chief Hamish Tyrwhitt said the contract demonstrates the group’s wide capability in resources.

“The Group is a leading provider of construction and contract mining services to the resources market, both in Australia and in the region. Sustained global demand for resources – primarily out of Asia – will continue to underpin a good range of opportunities for the Group for the foreseeable future.”

The plant is set for completion in the second quarter of 2015. Design and procurement work is in progress.

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