INTERNATIONAL COAL NEWS

Ausenco wins Canadian coal contract

ENGINEERING and project management group Ausenco has snared a contract to formulate a development...

Staff Reporter

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The contract is expected to be worth up to $A20 million in revenue and Ausenco has already started work on initial stages of Quintette’s development.

Full-scale construction activities are due to start early next year, once it moves beyond the permitting and approval process, with start-up some 12 months later in 2013.

Ausenco will be responsible for detailed engineering of the facility, sourcing of materials and equipment, project construction and management, as well as pre-commissioning works.

The contract builds on Ausenco’s previous work at Quintette, which included the feasibility study and early engineering work.

“We have a strong relationship with Teck through our Vancouver-based team,” Ausenco chief executive Zimi Meka said in a statement.

Located in British Colombia, the Quintette coal mine lies on the eastern side of the Rocky Mountain range and operated previously from 1982 to 2000.

It has been a solid six months for Ausenco after posting a net profit to the end of June of $7.7 million, versus a loss of $19.6 million for the same time last year.

Revenue for the half year was a record $257.2 million, up 17.1% over the previous corresponding half, driving growth in underlying earnings before interest, tax, depreciation and amortisation to $16.7 million, compared to a loss of $6.6 million for the six-month period last year.

Shares in Ausenco were up 1.2% or 3c in morning trade on $2.54.

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