The company will design and manufacture 10 C44ACi locomotives, incorporating technology from GE Transportation, for Xstrata.
The deal includes a 10-year maintenance program for the locomotives and a further 300 wagons.
The locomotive and wagon manufacturer and maintenance supplier will service the order from its Taree, Goulburn and Broadmeadow facilities.
UGL said most of the manufacturing and supply projects had already started.
The contract brings UGL’s new orders up to $A108 million.
UGL chief executive officer Richard Leupen said UGL’s rail business had a strong pipeline of tendering opportunity in the Australian market and overseas markets were being assessed.