Under the agreement, Leighton contractors will perform bulk excavation and selective coal mining operations at Sonoma, which is expected to initially produce 2.3 million tonnes of coal annually from late 2007 and 3.8Mtpa during 2008.

Mining Division managing director Peter McMorrow said experience with similar projects in this region was a key factor in securing 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,” he said.

Executive general manager Craig Laslett said the contract may be extended for a further five years making it a $1 billion contract over 10 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,” he 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.”