The contract, valued at $75 million, will see the construction of an 800 tonne per hour CHPP with commissioning due in the second half of 2007.
Once operational, the new facility will be able to process up to 5.8 million tonnes of coal per annum.
The signing of this contract symbolises another milestone in Sedgman’s 27-year history, representing the largest contract in value independently undertaken by Sedgman, the company said.
The Sonoma mine is a greenfields project that will produce both coking and thermal coal and has recently been awarded major project facilitation status by the Commonwealth Government.
“Sedgman has worked closely with Q Coal since the inception of the Sonoma project in developing the design for the CHPP and we are very proud to be part of this exciting project,” managing director Peter Hay said.
Sonoma was detailed in Sedgman’s April initial public offering prospectus as a “high probability project”
“The development of Sonoma evidences the continuing strong demand for coal and the need for coal infrastructure. With its ability to offer the full range of services to the coal industry from resource assessment, design, construction and operations, Sedgman remains in an ideal position to maximise its market position,” Hay said.
Hay also confirmed that Sedgman and Q Coal are currently negotiating terms for an operations contract to enable the company to operate the CHPP on Q Coal’s behalf for an initial five-year term.
