CIMIC win coal contract extensions

CIMIC’s Thiess and Sedgman subsidiaries have won $105 million worth of Queensland coal contract extensions.

Sedgman has won a three year extension to continue operations at the Red Mountain Joint Venture mine’s coal handling and preparation plant in the Bowen Basin.

Valued at $75 million, the contract continues Sedgman’s operation and maintenance of the CHPP until June 2019, with the potential for another two years on top of this.

Thiess has also won a contract expansion for its mining services at the Jellinbah Group’s Lake Vermont coal mine, which will see it design and build an additional processing module at the site’s CHPP.

Generating around $30 million in revenue for Thiess, the contract will see Sedgman provide engineering, procurement, construction, and commissioning of the module – which is expected to be completed in late 2017 – while Thiess will continue to operate and maintain the facility for the remainder of the contract term.

CIMIC executive chairman Marcelino Fernandez Verdes said the Lake Vermont win is a great demonstration of the combination of Thiess and Sedgman’s expertise.

“The Lake Vermont expansion demonstrates the value of the CIMIC Group’s capability, drawing together the best of Thiess and Sedgman’s expertise,” Verdes said.

Sedgman has worked for the RMJV since 2007. A Thiess Sedgman joint venture delivered a CHPP for the Jellinbah Group in 2007, and expended the facility in 2012. Thiess has operated the Lake Vermont mine since 2008.

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