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CIMIC Group‘s mining arm Thiess has secured a $250m contract to operate Australia-based QCoal Group’s Northern Hub mines near Collinsville, in the Bowen Basin, Queensland.

QCoal awarded the contract for the continuation of operations at its Sonoma and Drake mines beginning on 1 January 2016.

The three-year contract can also be extended for another year.

Llocated 6km south of Collinsville, Sonoma Mine produces up to four million tonnes of hard coking and thermal coal products annually.

"Sonoma Mine produces up to four million tonnes of hard coking and thermal coal products annually."

Drake Mine is located 17km south of Collinsville and will produce up to six million tonnes of coking and thermal coal products per annum once it is fully operational.

QCoal is using the existing infrastructure at its nearby Sonoma Mine to process early coal from this mine.

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By GlobalData

Coal from both the mines is railed to the Abbot Point Coal Terminal for export.

Cimic Group executive chairman and CEO Marcelino Fernández Verdes said: "The contract reinforces QCoal’s confidence in Thiess’s ability to continuing to deliver value solutions to the mining operations at the Northern Hub."

Thiess managing director Michael Wright said: "We have a long association with the QCoal Group going back to the start of the mine in 2007.

"Following the successful integration of the Cimic Group’s mining businesses into Thiess Global Mining, we continue to provide increased knowledge and experience to the benefit of our client."