Privately-held QCoal’s Byerwen mine produces coal. Credit: bartb_pt / Flickr.

Sedgman, a mining processing company of CIMIC Group, has secured an A$155m ($110m) Engineering, Procurement and Construction (EPC) contract from QCoal for its Byerwen coal mine in Central Queensland, Australia.

This contract will deliver an expansion on the first phase of the project, which the mining processing firm was awarded in February last year.

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The latest contract includes the duplication of the existing coal handling and processing plant.

CIMIC Group chief executive officer Michael Wright said: “The CIMIC Group has a long-standing and successful relationship with QCoal, which started in 2007, providing EPC services through Sedgman and mining services through Thiess.

“This latest contract demonstrates Sedgman’s ability to deliver positive and consistent outcomes for QCoal.”

“This latest contract demonstrates Sedgman’s ability to deliver positive and consistent outcomes for QCoal, and is a testament to the Sedgman team’s focus on delivering enduring value for our clients.”

Sedgman managing director Grant Fraser said: “We are pleased to continue our strong, long-term relationship with QCoal and look forward to assisting with the expansion of the Byerwen mine in a timeframe that optimises QCoal’s benefit.”

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Sedgman has commenced work and expects to finish the project in early 2020.

The Byerwen mine site is located 20km west of Glenden in Bowen Basin of Queensland.

In December 2018, CIMIC Group firms Sedgman and CPB Contractors secured a contract from Pembroke Resources for the Olive Downs Coking Coal Project in Central Queensland.

The scope of this contract involves design, procurement, construction and commissioning of the Coal Handling and Preparation Plant (CHPP). It will generate revenues of A$184m ($131m) to the group.

In November 2018, Sedgman won contracts from Mach Energy and QCoal to operate and maintain the Mount Pleasant and Byerwen CHPPs.

These contracts carry a total value of A$100m ($71.6m).