Expanding resource sector services company Sedgman Limited has secured a contract worth USD 80 million from BHP Billiton Mitsubishi Alliance to design and supply a coal handling and preparation plant for its proposed Daunia mine in Queensland’s Bowen Basin.

Under the Daunia contract, Sedgman’s coal division will undertake detailed design and procurement of the CHPP, with all key components scheduled for delivery during calendar 2009. Sedgman is also working with BMA to develop a construction estimate for the Daunia CHPP.

The Daunia site is approximately 25 kilometers south east of Moranbah and is adjacent to the Red Mountain coal handling and preparation plant which Sedgman currently operates for JV owners BHP Billiton and Peabody. Daunia is the first of a suite of mine projects currently planned for Queensland’s Bowen and Surat basins with potential to lift the state’s coal export capacity by some 75 million tonnes a year.

Mr Steve van Barneveld COO of Sedgman Coal said that Sedgman had worked with BMA on developing the concept design and was awarded the contract through a direct negotiation process. He adde that “This is another excellent example of the close working relationships Sedgman has fostered and developed over time. Our commitment to client relationships is focused on understanding a resource and providing an appropriate and innovative solution to support our customers’ needs and objectives.”

Mr Mark Read MD of Sedgman said that the Daunia contract maintained the company’s growth momentum as it continues to service a record number of feasibility studies within the coal division. He added that “We are expecting another strong year ahead as we expand into markets with large potential for long-term growth, including Africa, China and South America, on top of the booming Australian coal and metals sectors.”