QCoal awards $100m of Byerwen contracts to Sedgman

Mineral processing contractor Sedgman has won contracts at QCoal Group’s Byerwen coal mine in Queensland worth almost $100 million.

CIMIC Group, Sedgman’s parent company, reported that the contractor would deliver a stockpiling and train load-out facility, and a coal handling and processing plant at Byerwen through two engineering, procurement and construction (EPC) contracts. These contracts will start in 2017 and be completed next year.

Sedgman has also been awarded a third contract for the operation of the crushing and stockpiling at the coking coal mine, starting this month.

The greenfield Byerwen mine is 20km west of Glenden in the Bowen Basin.

Grant Fraser, Sedgman managing director, said the contractor significantly reduced the site construction time and cost for the project by using an innovative modular processing plant design.

“We are pleased to continue our strong, long-term relationship with the QCoal Group and look forward to contributing our core skills in technical delivery and commercial innovation at this project,” Fraser said.

The contracts add to a 10-year working relationship between QCoal and Sedgman.

CIMIC chief executive Michael Wright commented: “These contracts demonstrate Sedgman’s ongoing leadership in the coal processing industry and are a testament to the team’s focus on delivering value for our clients.”

QCoal confirmed last month that it had executed a $350 million mining services contract with Macmahon at the Byerwen mine. That contract involves the provision of all open cut mining and bulk earthworks at the new mine.

Byerwen, a joint venture between QCoal and Japan’s JFE Steel, is being developed to produce 10 million tonnes of coking coal a year.