The new contract focuses on overburden removal and coal mining, and follows contracts for coal processing, overburden removal, and train loading that were extended in 2000 with subsequent extensions in June 2003 and July 2007.

Thiess Mining chief executive Bruce Munro said he looked forward to continuing to work with BHP Mitsui Coal and to further improvements in safety performance as a key priority.

“On a number of occasions during the current term the site has achieved more than 100 days recordable injury free while delivering the required production outputs,” Munro said.

Thiess has a long relationship with BMC, having constructed and started operating the South Walker Creek mine in 1996.

Thiess managing director David Saxelby said the award of the new contract was testament to the relationship developed with BHP Mitsui Coal over the past 14 years and to the efforts of its respective teams.

Thiess employs nearly 300 technical, operational, maintenance and management team members at South Walker Creek mine.

South Walker Creek mine is located some 40 kilometres west of Nebo, in the state’s coal-rich Bowen Basin. The mine produces both PCI and thermal product coal for export.

In other BHP Billiton news, the Japanese Nikkei business daily has reported that the company has notified Japanese steelmakers that it will raise the price for high-quality coking coal to about $US225 ($A271.72) per ton for the July-September quarter.

The more than 10% sequential hike for the coal is thought likely to be accepted as steelmakers had given in to miners' demands for an April-June price increase, the paper said.

Since this fiscal year, miners and steelmakers have been negotiating the price of coking coal on a quarterly basis, rather than annually.