Energy Resources has awarded a four-year contract extension to CIMIC Group’s mining arm Thiess for the company’s Ukhaa Khudag coal mine in Mongolia.

The extension will deliver up to $1bn of revenue during the next seven years and complements the existing eight-year agreement signed in 2008.

Under the contract extension, Thiess will continue operations and maintenance delivery at the Ukhaa Khudag coal mine until 2022.

Under an alliance structure, the company will provide services such as fleet operation and maintenance for overburden stripping, coal mining and blast drilling.

"The extension will deliver up to $1bn of revenue during the next seven years."

Thiess will also be involved in mine planning and health, safety and environmental management.

CIMIC executive chairman and CEO Marcelino Fernández Verdes said: "It demonstrates Thiess’s ability to deliver world-class mining solutions to our clients across our global platform, irrespective of location."

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Thiess managing director Michael Wright said: "We are delighted to extend our partnership with Energy Resources and to continue our focus on delivering cost-efficiencies and innovation at the UHG mine."

The Ukhaa Khudag coal mine is a remote ite in the Thiess global mining portfolio, 600km south of Mongolia’s capital Ulaanbaatar.

At the mine, Thiess will provide pit dewatering, removing overburden, loading and hauling coal, mine planning, engineering and fleet operation and maintenance services.

Image: Thiess will continue to provide operations at the Ukhaa Khudag coal mine until 2022. Photo: courtesy of Thiess.