QBR reported that Brisbane based mining services company Sedgman has retained 2 key contracts worth USD 80 million at Macarthur Coal’s Coppabella and Moorvale mines.

The 3 year contracts mean Sedgman will continue to operate and maintain the Coppabella and Moorvale coal handling and preparation plants including their stockpile management and train loading functions.

Mr Steve van Barneveld COO of Sedgman Coal said that the contracted services include provision of staff, maintenance planning, process optimization, health, safety and environmental management, supply of parts and consumables and provision of mobile equipment.

Mr Barneveld said that “This is Sedgman’s third operating term for Coppabella since we designed and built the original CHPP in 1999 and our second term at Moorvale after completing the CHPP there in 2003.”

He said that “One of Sedgman’s major strengths is the close working relationship the Company fosters and develops over time with its clients and this is yet another example of those relationships delivering mutual benefits.”

Ms Nicole Hollows MD of Macarthur Coal congratulated Sedgman on the milestone achievement in safety at the 2 sites. Ms Hollows said that “The team at Macarthur looks forward to our long-term relationship with Sedgman continuing to add value throughout our operations.”

Mr Mark Read MD of Sedgman said that operating contracts such as those renewed by Macarthur are particularly important to the company. Mr Read said that “Contract renewals like this are a powerful endorsement of strategy and how we do business because they not only provide an opportunity for us to strengthen and deepen key client relationships, but they also provide the Company with stable long term earnings.”

He said that “More than 40% of Sedgman’s FY2009 H1 earnings were generated by our 12 operations contracts so, not surprisingly, we remain focused on growing our portfolio of such contracts in both the coal and metals sectors.”

The Coppabella plant has processed more that 47 million tonnes of coal since completion and operated lost time and injury free for the past eight years.

(Sourced from QBR.com)