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CIMIC’s Thiess and Sedgman awarded $105m in contract extensions       

August 26, 2016 • News

CIMIC Group’s mineral processing company, Sedgman, has won a three-year contract extension by Red Mountain Joint Venture (RMJV) to continue operations at its coal handling and preparation plant (CHPP) in the Bowen Basin, Queensland.

The $75 million contract will see Sedgman, which has worked for RMJV since 2007, operate at the plant until June 2019 with an option to extend for an additional two years after the initial period.

In a separate agreement announced on Thursday, CIMIC’s mining services provider Thiess has expanded its mining services contract at the Lake Vermont Coal Mine in Queensland’s Bowen Basin. The company, which has operated the mine since 2008, will also design and build an additional processing module at the CHPP, generating revenue of $30 million.

According to the press release by CIMIC, engineering, procurement, construction and commissioning of the module will be undertaken by Sedgman, while Thiess will continue to operate and maintain the facility for the balance of the current contract term, as announced on 11 December 2015.

“Thiess and Sedgman’s continual focus on delivering industry leading results is evident in their ongoing performance for these long term clients,” said CIMIC Executive Chairman and Chief Executive Officer Marcelino Fernández Verdes.

“The Lake Vermont expansion demonstrates the value of the CIMIC Group’s capability, drawing together the best of Thiess and Sedgman’s expertise to deliver value for our clients.”

Sedgman Acting Managing Director Michael Carretta said the contract extension builds on the fruitful JV partnership between  the two companies which was established more than 10 years ago.

“For more than a decade, Thiess and Sedgman have worked together to provide innovative solutions for our clients, which we are pleased to continue,” Mr Carretta said.

Thiess Managing Director Michael Wright said the combined know-how of Thiess and Sedgman will deliver great value for the Jellinbah Group.

“The Lake Vermont expansion combines the expertise of both Thiess and Sedgman to deliver a solution that will improve resource recovery and generate greater value from the mine for our client Jellinbah Group,” Mr Wright added.

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