Macarthur Coal has awarded Theiss Sedgman (TSJV) an A$85m ($84.5m) contract for the construction of a new coal handling and preparation plant (CHPP) in Australia.

Under the contract, TSJV will design, procure, construct and commission the CHPP, which will have a production capacity of 600t/hr, at the Codrilla coal mine in Bowen Basin, Australia.

TSJV has commenced the work, with practical completion due in the fourth quarter of 2013.

Mining operations are expected to commence in 2012, subject to the receipt of final regulatory approvals.

Sedgman managing director and CEO Nick Jukes said that the firm has previously designed and built three CHPPs for Macarthur Coal and continues to operate these CHPPs, including stockpile management and train loading functions.