Engineering contractor Macmahon Holdings Limited said that it has been awarded a 3 year contract valued at more than USD 190 million to develop and operate the new Cameby Downs coal mine in Queensland.

The contract, awarded by mine owners Syntech Resources Pty Limited, is for Macmahon to undertake all mining for stage one of the project. This includes planning, mine development, waste stripping, coal mining, coal preparation and train loading.

Mr Nick Bowen CEO of Macmahon said that the award was an excellent addition to the company's growing portfolio of work.

Production will commence in July and the first coal train load is expected in October. At full production in stage one, the mine will produce 1.4 million tonnes each year of high quality thermal coal for export via Port of Brisbane. Stage two production is targeted at shipping in excess of 10 million tonnes via Port of Gladstone.

The Surat Basin forms one of the last major undeveloped export coal deposits in Australia with an estimated coal resource of about four billion tonnes and an anticipated life span of over 30 years.

(Sourced from AAP)