The contract is to engineer, procure and construct the plant which is part of Whitehaven’s plan to install a longwall and lift production to 6 million tonnes per annum at Narrabri.

The new facility will include reclamation capacity of 1000 tonnes per hour of coal from the existing raw coal stockpile, a rotary breaker, a dry screening process, dense media bath and a PCI coal-processing circuit.

Sedgman managing director Mark Read said winning the contract further supported the company’s positive outlook for the 2011 financial year.

Despite the positive outlook, the 2010 financial year could be below expectations due to further slippage in the timing of contract commitments for one CHPP which will shift profits into 2011.

Furthermore, due to the Chilean earthquake earlier this year the Bocamina project remains in force majeure with completion delays now expected.

Sedgman is yet to determine the exact impact of the delays on its 2010 guidance.

Sedgman was trading unchanged this morning at $A1.68.