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CIMIC's Sedgman and Thiess win $105m in contract extensions

CIMIC Group’s mineral processing
company, Sedgman, has been awarded a three-year contract extension by
Red Mountain Joint Venture (RMJV) to continue operations at the RMJV’s
coal handling and preparation plant (CHPP) in the Bowen Basin,
Queensland.

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The contract, with revenue of $75 million, continues Sedgman’s

operation and maintenance of the CHPP until June 2019, with the

potential for an additional two years after the initial period.

Separately,

Thiess, CIMIC’s mining services provider, has expanded its mining

services contract at the Lake Vermont Coal Mine in Queensland’s Bowen

Basin, and will design and build an additional processing module at the

CHPP, generating revenue of $30 million.

Engineering, procurement,

construction and commissioning of the module will be undertaken by

Sedgman and is expected to be completed in late 2017. Thiess will

continue to operate and maintain the facility for the balance of the

current contract term.1)

CIMIC Executive Chairman and

Chief Executive Officer Marcelino Fernández Verdes said: “Thiess and

Sedgman’s continual focus on delivering industry leading results is

evident in their ongoing performance for these long term clients.

“The

Lake Vermont expansion demonstrates the value of the CIMIC Group’s

capability, drawing together the best of Thiess and Sedgman’s expertise

to deliver value for our clients.”

Sedgman Acting Managing

Director Michael Carretta said: “For more than a decade, Thiess and

Sedgman have worked together to provide innovative solutions for our

clients, which we are pleased to continue.”

Thiess Managing

Director Michael Wright said: “The Lake Vermont expansion combines the

expertise of both Thiess and Sedgman to deliver a solution that will

improve resource recovery and generate greater value from the mine for

our client Jellinbah Group.”

Sedgman has worked for RMJV since

2007. The Thiess Sedgman Joint Venture delivered a CHPP for the

Jellinbah Group in 2007 and expanded the facility in 2012. Thiess has

operated the Lake Vermont mine since 2008.

1) As announced on 11 December 2015.