Mining services company Sedgman has secured a $133m engineering procurement construction (EPC) contract for Groote Eylandt Mining Company (GEMCO)'s manganese mine expansion project.
According to Sedgman, the latest project re-processes manganese ore stored in tailings stockpiles and is expected to increase the facility's capacity by 0.5 million tonnes (Mt) a year.
As part of the contract, Sedgman will provide detailed design, supply, fabrication, construction and commissioning of a sands beneficiation plant and port stockpile expansion, as well as associated infrastructure.
Sedgman CEO and managing director Peter Watson said: "Our involvement in this project commenced at the early feasibility study stage and we are excited that we have been chosen to deliver the project.
"This is another example of the strength of our 'create' and 'build' model as we were able to develop a strong relationship with and demonstrate value to GEMCO from concept through to execution.
"It also marks another important milestone in our diversification strategy with over 50% of our current order book in commodities other than our traditional coal market."
Detailed design on the project has commenced with completion scheduled for March 2016.
Groote Eylandt is located in the Gulf of Carpentaria in the Northern Territory.
Australia-based Sedgman's services range from concept, pre-feasibility and design through to construction, commissioning, operations, maintenance and asset management.