Byerwen Coal Mine in Central Queensland
Byerwen Coal Mine in Central Queensland Contributed

New contract for Bowen Basin coal mine

A NEW contract for the Byerwen Coal Mine has been awarded to CIMIC Group's mineral processing company, Sedgman.

This will continue CIMIC Group's long standing relationship with the QCoal Group.

The mine, which is located 20 kilometres west of Glenden, is expecting to produce 10 million tonnes of hard coking coal per year.

The engineering, procurement and construction contract will deliver an expansion on the first phase of the project, which Sedgman was awarded in February 2018, and will include the duplication of the existing coal handling and processing plant.

The contract will generate revenue of $155 million for CIMIC Group.

CIMIC Group Chief Executive Officer Michael Wright said the CIMIC Group has long standing and successful relationship with QCoal.

"This latest contract demonstrates Sedgman's ability to deliver positive and consistent outcomes for QCoal, and is a testament to the Sedgman team's focus on delivering enduring value for our clients," he said.

Sedgman Managing Director Grant Fraser said they look forward to assisting with the expansion of the Byerwen mine in a timeframe that optimises QCoal's benefit.

Early work has commenced and the project will conclude in early 2020.

The Byerwen mine site is located 20 kilometres west of Glenden in Queensland's Bowen Basin.