$80 m contract for CHPP

Sedgman Limited has secured an $80 million contract from BHP Billiton Mitsubishi Alliance (BMA) to design and supply a coal handling and preparation plant (CHPP) for its proposed Daunia mine in Queensland’s Bowen Basin.

Sedgman Limited has secured an $80 million contract from BHP Billiton Mitsubishi Alliance (BMA) to design and supply a coal handling and preparation plant (CHPP) for its proposed Daunia mine in Queensland’s Bowen Basin.

The Daunia site is approximately 25km south-east of Moranbah, and is adjacent to the Red Mountain CHPP which Sedgman currently operates for joint venture owners BHP Billiton and Peabody.

Sedgman Coal’s Chief Operating Officer Steve van Barneveld said Sedgman had worked with BMA on developing the concept design and was awarded the contract through a direct negotiation process.

“This is another excellent example of the close working relationships Sedgman has fostered and developed over time,” van Barneveld said.

“Our commitment to client relationships is focused on understanding a resource and providing an appropriate and innovative solution to support our customers’ needs and objectives.”

Daunia is the first of a suite of mine projects currently planned for Queensland’s Bowen and Surat basins with potential to lift the State’s coal export capacity by some 75 million tonnes a year.

Under the Daunia contract Sedgman’s coal division will undertake detailed design and procurement of the CHPP, with all key components scheduled for delivery during calendar 2009.

Sedgman is also working with BMA to develop a construction estimate for the Daunia CHPP.

Sedgman’s Managing Director Mark Read said the Daunia contract maintained the Company’s growth momentum as it continues to service a record number of feasibility studies within the Coal division.

“We are expecting another strong year ahead as we expand into markets with large potential for long-term growth, including Africa, China and South America, on top of the booming Australian coal and metals sectors,” he said.

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