The coal contractor said the award came from a “global mining company” but did not provide details.

The initial term has been set at two years with the option to extend for another year and is expected to generate revenue of about $10-12 million a year.

Under the agreement, Mastermyne will construct underground roadways for mine infrastructure both in seam and out of seam.

It will employ about 50 full time workers for the job and will supply its own equipment for the work.

The contract started in August and work has already begun.

“We are very pleased with this result and look forward to continuing our strong working relationship with global mining companies in the region,” CEO Tony Caruso said.

“The awarding of this major tender reinforces Mastermyne’s strong value proposition and supports the integral role contracting organisations will play in maintaining a globally competitive coal sector.

“The company’s pipeline remains strong and with our track record in the coal sector we are looking forward to building on this success with further contract wins.”

Mastermyne shares were up 15% to 23c yesterday on the news.