Downer EDI has signed a contract with Glencore’s Cobar Management Pty subsidiary that will see the contractor carry out mining services at the CSA underground copper mine in Cobar, New South Wales, Australia, for another three years.

The contract, which Cobar management has an option to extend for up to 24 months, is valued at approximately A$120 million ($89 million) and follows the successful completion of a three-year mining services agreement awarded to Downer in May 2015.

Downer’s scope of works includes mechanised decline and lateral development mining and haulage, with the provision of ground support services including shotcrete and cable bolting.

CEO Grant Fenn said the company has a strong track record of providing mining services to Cobar and “helping it to drive efficiencies across its operations”.

Glencore’s Cobar operations produced 22,900 tonnes of copper concentrate and 238,000 ounces of silver concentrate in the first six months of 2018.