CIMIC Group companies Sedgman and CPB Contractors have been awarded a contract by Pembroke Resources at the Olive Downs coking coal project in central Queensland, Australia.

The contract is for design, procurement, construction and commissioning of the coal handling and preparation plant (CHPP), and will generate revenue to CIMIC Group of A$184 million ($130 million), the company said.

CIMIC said: “Mineral processing company Sedgman and construction company CPB Contractors will work together to deliver this end-to-end solution. Design and early procurement work will commence immediately.”

The CHPP developed by Sedgman, CPB and Pembroke will have sufficient capacity to process the first phase of annual production of up to 6 Mt of run of mine coal from Olive Downs, according to Pembroke. Fully developed, the project will have the capacity to produce up to 15 Mt/y of high-quality metallurgical coal.

Sedgman Managing Director Grant Fraser called Olive Downs an “exciting, long-term development in the Queensland Bowen Basin”, while CPB Contractors Managing Director Juan Santamaria said the project would draw on his company’s long experience in resources infrastructure and strong ongoing project involvement in regional Queensland.

Work is expected to be completed in 2020. The project has 813 Mt of resources, including 514 Mt of reserves.