The contract, which was announced on December 11, is part of the overall development of the Eagle Downs hard coking coal mine located south of Moranbah in the Bowen Basin and owned by a joint venture between Brazilian giant Vale and Aquila Resources.
It is a boost for the underperforming mining division, which has lagged WDS’ energy division that has benefited from CSG contracts.
The energy division recorded revenue for the six months to December 2013 of $144.2 million, a 19% increase on the previous corresponding period.
It almost tripled its earnings before interest and tax to $15.2 million.
The mining business continued to be severely impacted by the slowdown in the Australian coal industry with half yearly revenue falling 55% to $31 million and the business suffering a $2.2 million loss.
But now the company expects the Eagle Downs contract to lift the mining division into profitability by the 2015 financial year.
The contract includes construction of two 2km long drifts, which will provide access for the workforce, materials and a permanent conveyor to the Harrow Creek upper coal seam, as well as establishment of permanent services required for development of the mine.
The drifts will be used in the future to gain access to other coal seams where reserves have been identified.
The project will be completed using two WDS-owned 300-kilowatt roadheaders specifically engineered to meet the requirements of the project.
Full production is expected to commence in the final quarter of FY14 with a peak project workforce of around 90 people located onsite.
