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Tender awarded for $1.76B coal project in Central Queensland

The proponent of Byerwen Coal Mine has awarded the next head contract for a new expansion project. (Photo credit: QCoal Group)

A subsidiary of a multinational contractor has won a major tender at a $1.76 billion mining project in Central Queensland’s Bowen Basin.

Mineral processing company Sedgman won the engineering, procurement and construction (EPC) contract at QCoal Group’s Byerwen Coal Mine, 20km west of Glenden.

QMEB can reveal the deal is worth $155 million, and involves duplicating the existing coal handling and processing plant. Sedgman previously won the contract for the first phase of the project in February 2018, and credits its existing relationship with the proponent for securing the latest work.

“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,” Sedgman managing director Grant Fraser said in a written statement.

The larger CIMIC Group has had a “long standing and successful relationship” with QCoal since 2007.

“[We were] providing EPC services through Sedgman and mining services through Thiess,” CIMIC Group CEO Michael Wright said.

“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.”

Early work is underway and construction will end in early 2020.

Positions will be advertised on Sedgman’s careers website.

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