The company is also in advanced discussions concerning three Australian coal projects totalling $A280 million and has identified a number of near-term metals projects in Australia and overseas, it said in an update.

“The continued weakening of coal prices together with the high Australian dollar has seen a contraction in the expected capital spend of major mining companies for Australian projects,” it said.

“The risk of project slippage remains an issue, with environmental and project approval delays continuing to weigh on Australian projects.”

Sedgman expects that coal processing under its current contract with Rio Tinto Coal's Blair Athol will end in mid- November.

The company was in advanced discussions regarding the redeployment of the Blair Athol plant in Queensland and would receive an early termination fee if the contract was terminated, it said.

Sedgman has also been advised that the operations management contract at the UHG 1 processing plant in Mongolia will end on December 31, 2012, to allow UHG to transition to owner operations.

It is in discussions with UHG over providing training services for plant personnel at the mine.

Sedgman chief executive officer Nick Jukes said he did not expect these developments to have any material impact on financial year 2013 revenue.

“While it is disappointing that these contracts are ending, we are involved in active dialogue with both clients to find ways that we can continue to add value to their operations,” he said.