Macarthur renews contracts

Sedgman Limited has extended and amalgamated $80 million worth of operating contracts at Macarthur Coal's Coppabella and Moorvale coal mines.

Resource services company Sedgman Limited has extended and amalgamated $80 million worth of operating contracts at Macarthur Coal’s Coppabella and Moorvale coal mines, the company said in an announcement.

The three-year contract will see Sedgman continue to operate and maintain the Coppabella and Moorvale Coal Handling and Preparation Plants (CHPP), including their stockpile management and train loading functions.

“This is Sedgman’s third operating term for Coppabella since we designed and built the original CHPP in 1999 and our second term at Moorvale after completing the CHPP there in 2003,” Sedgman chief operating officer Steve van Barneveld said.

According to van Barneveld, the contracted services included provision of staff, maintenance planning, process optimisation, health, safety and environmental management, supply of parts and consumables and provision of mobile equipment.

Operating contracts such as those with Macarthur Coal are particularly important to the future of the company, Sedgman managing director Mark Read said.

“Contract renewals like this are a powerful endorsement of strategy and how we do business because they not only provide an opportunity for us to strengthen and deepen key client relationships, but they also provide the company with stable long term earnings,” he said.

Macarthur Coal managing director, Nicole Hollows, said the new contracts are a milestone achievement in the relationship between the two companies.

“The team at Macarthur looks forward to our long term relationship with Sedgman continuing to add value throughout our operations” she said.

Under the previous operating contracts between Sedgman and Macarthur, the Coppabella CHPP processed more than 47 million tonnes of coal, while the Moorvale CHPP has processed 16 million tonnes.

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