Sedgman has renewed its CHPP operations contract with QCoal Group for a further three years until December 2017 at the Sonoma mine in the Bowen Basin, Queensland, Australia with an expected revenue of A$70 million over the contract term. The CHPP facility is scheduled to process approximately 6.0 Mt/y of coking and thermal coal from the QCoal Group open-pit mines located near Collinsville in the Bowen Basin. Sedgman designed and constructed the Sonoma CHPP and has operated the facility since 2009.
Chief Executive Officer and Managing Director Peter Watson: “This latest renewal is a clear demonstration of the value that Sedgman’s business model offers clients from concept study through delivery to ongoing operations. Our operations team have been working collaboratively with QCoal to maximise CHPP productivity and optimise processing costs. Our Sonoma site based team, supported by our off-site support group, have consistently delivered industry leading facility run hours and excellent process performance at this facility.
“We are focussed on the relentless pursuit of value to provide superior operational outcomes for our clients and look forward to working with QCoal and the Sonoma site based team over the next three years.”
Sedgman has also renewed its crushing and screening operations contract for a further three years at Gold Fields’ Agnew gold mine. The contract renewal extends the effective operating term until September 2017 with expected total revenue of A$23 million over the term of the contract.
Watson said Sedgman was excited to continue working with Gold Fields, a relationship that first commenced in 1997. “The successful renewal of our operations contract with Gold Fields in a highly competitive market is very pleasing.
“Sedgman has been delivering crushing and screening services at Agnew for over 18 years. This is testament to the strong relationships we seek to build with clients and is a great demonstration of how we have been able to deliver ongoing value to Gold Fields during that time.
“We are seeing an increasing number of operations and operations consulting opportunities emerge as clients look for ways to further optimise their operations and increase the ‘Value in Use’ of their existing assets.”
The crushing and screening facility is scheduled to crush approximately 1.2Mt/y of ore from the Agnew underground mines, located near Leinster in Western Australia.