It is reported that mineral processing solutions provider Sedgman has won USD 20 million contract from Energy Resources to provide design, procurement and construction management services for a new coal handling and processing plant at its UHG mine in the South Gobi region of Mongolia.

Mr Steve van Barneveld COO of Sedgman Coal said that the contract is the first won through the company’s Beijing office, which opened in mid 2008.

He said that “This is a significant milestone for us as it not only recognizes the energy and diligence of our team in China, but provides tangible evidence that our international expansion strategy continues to deliver great outcomes. Sedgman will start work on the design immediately.”

Mr Mark Read MD of Sedgman said that the UHG project is strategically important to Sedgman given the region’s future development potential.

He said that “This coal processing plant is the first to be built in Mongolia and will set the standard for future mine developments there. The South Gobi region is forecast to grow production rapidly due to its close proximity to China’s major steel makers.”

The 800 tonne per hour phase one CHPP is due to be completed in 2010. However, production is planned to double at the UHG mine on completion of a new rail link to China in 2011.

Mr Read said that the UHG CHPP is just one of the many exciting opportunities in Sedgman’s USD 4.3 billion project pipeline.

He said that “It further supports our decision to expand offshore into targeted high growth international markets and build on Sedgman’s reputation as the leading provider of coal processing solutions globally.”