Mining services provider Sedgman Limited (ASX:SDM) has scored a $36.7 million contract from metallurgical coal producer Cockatoo Coal Limited (ASX:COK).
The contract will see Sedgman work on the expansion of Cockatoo Coal’s Baralaba Coal Mine in Queensland’s Bowen Basin.
The project will be executed under two separate parts consisting of a design and procurement component and a construction component.
Sedgman says it is currently finalising design and procurement and expects final approval of the construction component in November.
Sedgman CEO and Managing Director Peter Watson says the company’s innovative approach to design and low cost procurement options will realise technical and commercial value for Cockatoo Coal.
Sedgman reported a net loss of $7.69 million in the full 2014 financial year.
