Slated to start on September 1, the contract comprises a five-year term valued at $200-250 million. It includes an option for a five-year extension.

Downer will operate and manage all mine and associated activities including mine planning and design; overburden removal; drill and blast; and coal mining and rehabilitation. The engineering and infrastructure management services company also holds statutory responsibility for the mine site.

The win builds on Downer’s previous work delivering coal to the Millmerran Power Station – with the company providing a total mining service at Commodore since 2000.

"We are delighted to be continuing this 14-year partnership," Downer CEO Grant Fenn said.

"It is due to the strength of our relationship with Millmerran Power Partners that Commodore has become our flagship mining project in terms of environmental sustainability.

Commodore was one of the first open cut coal mines in the world to completely switch its total fuel use to biodiesel. In addition, it pioneered a program to independently verify fugitive methane emissions.