The Thiess Sedgman Joint Venture (TSJV) has been awarded a A$85 million contract to design, procure, construct and commission a Coal Handling and Preparation Plant (CHPP) at the Codrilla coal mine on behalf of Macarthur Coal (C&M Management), the manager of the Coppabella Moorvale Joint Venture (CMJV). The mine is located in Queensland’s Bowen Basin, about 185 km southwest of Mackay near the townships of Nebo and Moranbah and is being developed by the CMJV, in which Macarthur Coal is the majority joint venture participant. Mining operations are expected to commence in calendar year 2012, subject to the receipt of final regulatory approvals.

The CHPP capacity will be 600 t/h. The TSJV’s works have commenced, and practical completion is due in the fourth quarter of FY2013. The TSJV contract is not contingent on any outcomes of the current PEAMCoal takeover offer for Macarthur Coal.

Sedgman Managing Director and Chief Executive Officer Nick Jukes said Sedgman was extremely pleased to further strengthen its relationship with Macarthur Coal. “Sedgman has had a long association with Macarthur Coal, having designed and built CHPPs at the Coppabella mine in 1999, at Moorvale mine in 2003, and at Middlemount mine in 2007. Sedgman continues to operate these CHPPs, including stockpile management and train loading functions.

“One of Sedgman’s major strengths is the close working relationship the Company fosters and develops over time with its clients and this is yet another example of those relationships delivering mutual benefits.”