Sedgman, CIMIC Group’s mineral processing company, has been awarded a combined revenue of almost $100 million in contracts by QCoal Group for the greenfield Byerwen Coal Mine located in Central Queensland.
CIMIC Group reported that through two engineering, procurement and construction (EPC) contracts, the contractor will deliver a stockpiling and train load-out facility and a coal handling and processing plant at Byerwen. Work on these contracts will commence in late 2017 and conclude in 2018.
Byerwen is the joint venture between QCoal and Japan’s JFE Steel with the development set to produce 10 million tonnes of coking coal a year.
Starting this month, Sedgman will complete a third contract for the operation of the crushing and stockpiling at the coking coal mine.
The greenfield Byerwen mine site is located 20 kilometres west of Glenden in Queensland’s Bowen Basin region.
Sedgman managing director, Grant Fraser, said that by using an innovative modular processing plant design, site construction time and cost for this project can be significantly reduced, thereby delivering increased value for the client.
“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,” said Fraser.
The addition of these contracts strengthens the 10-year working relationship between QCoal and Sedgman.
Michael Wright, CIMIC Group Chief Executive Officer said: “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”.
Last month, QCoal confirmed last month that a $350 million mining services contract with Macmahon at the Byerwen mine had been awarded. The contract includes all provisionary open cut mining and bulk earthworks at the new mine.
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Source: CIMIC, Australian Mining.