Engineering contractor Macmahon Holdings has won a A$190m contract from Syntech Resources to develop and operate Syntech’s Cameby Downs coal mine in Queensland.

The three-year contract will include planning, mine development, waste stripping, coal mining, coal preparation and train loading for stage-one of the project.

In the first stage at full production, the mine is expected to produce 1.4 million tons a year while in stage two the mine will produce more than ten million tons.

Production is expected to commence in July 2010.

Cameby Downs is located in Surat Basin, a major undeveloped export coal deposit in Australia with an estimated coal resource of approximately four billion tons and a projected life span of over 30 years.