John Holland has signed a memorandum of understanding (MoU) with Isaac Plains Coal Management to extend its mining services contract for the Isaac Plains open-pit coal mine in the Bowen Basin of Queensland, Australia.

The company said it will negotiate the final contract terms on a one-year contract extension worth an estimated $200m, beginning in July 2012, and begin negotiations on an additional three-year agreement.

John Holland group managing director Glenn Palin said the award contract reflects the diversity of company skills across the energy and resources sector.

"This agreement provides an opportunity to further develop our mining skills and capabilities, which complement our broader skills in energy and resources, including our specialist engineering capabilities in ports construction and in the delivery of large-scale materials handling infrastructure," said Palin.

"Our long-term strategy is to use these skills, along with our capabilities as an operator and maintainer of major transport networks, to develop and deliver fully integrated mine operations to port services for our clients."

Under the agreement, John Holland will work with Isaac Plains Coal Management to finalise final contract terms and scope of work for the coal mine, which is set to produce about 3.6 million ROM tonnes of coal over the next 12 months.