Sedgman wins operation and maintenance contracts for CHPP plants

7 November 2018 (Last Updated June 8th, 2020 11:56)

Mineral processing services provider Sedgman has received two contracts worth A$100m ($71.99m) for the operation and maintenance of coal handling and preparation plants (CHPP) in Australia.

Sedgman wins operation and maintenance contracts for CHPP plants
Sedgman will operate and maintain the Byerwen CHPP site in Queensland for one year. Credit: Sharon Loxton / Coal stockpile at Avonmouth docks / CC BY-SA 2.0.

Mineral processing services provider Sedgman has received two contracts worth A$100m ($71.99m) for the operation and maintenance of coal handling and preparation plants (CHPP) in Australia.

The company, which operates as a subsidiary of CIMIC Group, secured a contract from Mach Energy to operate and maintain the Mount Pleasant site at Muswellbrook in New South Wales for a period of three years. The value of the contract stands at around A$75m ($53.99m).

Another contract was awarded by coal mining company QCoal to operate and maintain the Byerwen CHPP site at Glenden in Queensland. Valid for one year, the contract will accrue about A$25m ($17.99m) to Sedgman.

CIMIC Group CEO Michael Wright said: “Sedgman has a strong track record of reliably operating and maintaining CHPPs, and these further contract wins highlight the company’s strength in end to end mineral processing solutions.”

While the Mount Pleasant facility is expected to begin operations by the end of this year, the Byerwen CHPP is currently being commissioned.

“These further contract wins highlight the company’s strength in end to end mineral processing solutions.”

Sedgman managing director Grant Fraser said: “We have been closely involved throughout the Byerwen project from the engineering, procurement and construction of the stockpile, train load-out and CHPP. We are pleased to be completing the cycle by operating the plant.

“At Mount Pleasant we are building on CIMIC Group’s long established partnership with Mach Energy and drawing on our relationship with Thiess, also a member of CIMIC Group, to deliver a seamless service that will maximise the value from the site.”

Last month, CIMIC’s mining division Thiess won a contract worth A$1.2bn ($863.88m) for the provision of mining services at BHP’s Mt Arthur Coal operation in the Hunter Valley, Australia.