Hughes Drilling has been subcontracted by Downer to provide overburden and coal drilling services at the Blackwater mine.
Downer was initially awarded the $150 million, three year mining contract at the BMA Blackwater coal mine a fortnight ago.
As part of its contract, Hughes will provide its services over a three year period, with an option for an additional two years.
The work will require six REICHdrill production drill rigs.
Bob Hughes, Hughes Drilling MD, called the win an exciting opportunity, and welcome the chance to work with Downer.