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Cimic's Sedgman and Thiess win in Contract Extensions

Cimic Group’s mineral processing company, Sedgman, has been awarded a three-year contract extension by Red Mountain Joint Venture (RMJV) to continue operations at the RMJV’s coal handling and preparation plant (CHPP) in the Bowen Basin, Queensland.

The contract, with revenue of $75 million, continues Sedgman’s operation and maintenance of the CHPP until June 2019, with the potential for an additional two years after the initial period.

Separately, Thiess, Cimic’s mining services provider, has expanded its mining services contract at the Lake Vermont Coal Mine in Queensland’s Bowen Basin, and will design and build an additional processing module at the CHPP, generating revenue of $30 million.

Engineering, procurement, construction and commissioning of the module will be undertaken by Sedgman and is expected to be completed in late 2017. Thiess will continue to operate and maintain the facility for the balance of the current contract term.1)

Cimic Executive Chairman and Chief Executive Officer Marcelino Fernández Verdes said: “Thiess and Sedgman’s continual focus on delivering industry leading results is evident in their ongoing performance for these long term clients.

“The Lake Vermont expansion demonstrates the value of the Cimic Group’s capability, drawing together the best of Thiess and Sedgman’s expertise to deliver value for our clients.”

Sedgman Acting Managing Director Michael Carretta said: “For more than a decade, Thiess and Sedgman have worked together to provide innovative solutions for our clients, which we are pleased to continue.”

Thiess Managing Director Michael Wright said: “The Lake Vermont expansion combines the expertise of both Thiess and Sedgman to deliver a solution that will improve resource recovery and generate greater value from the mine for our client Jellinbah Group.”

Sedgman has worked for RMJV since 2007. The Thiess Sedgman Joint Venture delivered a CHPP for the Jellinbah Group in 2007 and expanded the facility in 2012. Thiess has operated the Lake Vermont mine since 2008.

1) As announced on 11 December 2015.

Source: Hochtief AG

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