Leighton Contractors awarded $500m Sonoma coal contract

Leighton Contractors’ Mining Division has been awarded a five-year contract....

  Leighton Contractors’ Mining Division has been awarded a five-year contract worth in excess of $500m by Sonoma Mine Management Pty Ltd.Under the contract, Leighton Contractors will perform bulk excavation and selective coal mining operations at the new Sonoma Coal project, which is situated in the Bowen Basin, 200km northwest of Mackay in Queensland. Leighton Contractors Managing Director, Peter McMorrow said the company’s track record in managing similar projects in the region was a key factor in winning the contract. “The award of this contract recognises Leighton Contractors’ experience within the Australian mining and resources sector and our commitment to achieving the best possible results for our clients,” Mr McMorrow said. Executive General Manager of Leighton Contractors’ Mining Division, Craig Laslett said the contract had the option to be extended for a further five years, making it a $1 billion contract over ten years. “The extension of the contract will depend on a number of key performance indicators and I am confident that Leighton Contractors Mining Division will meet them,” Mr Laslett said. “This is a fantastic opportunity and we look forward to working closely with the Sonoma Mine Management team to develop this world class project,” he said. The Sonoma Project is expected to initially produce 2.3 million tonnes of coal annually, with production set to commence in late 2007, increasing to 3.8 million tonnes per annum during 2008. Production from Sonoma will include an approximately equal mix of hard coking coal and thermal coal.