WDS will undertake additional coal driveage to develop the North West Mains to the new pit bottom using one of its continuous miners.
Managing director Gareth Mann told Corporatefile the project would be released progressively with the initial work scope worth $A18 million.
Total project scope, depending on the final design, could be $40-70 million and will take up to two years to finish.
The Metropolitan longwall received permits for a 1 million tonne per annum expansion of hard coking coal capacity up to 2.8Mtpa of saleable coal, giving the mine 23 more years of production.
WDS has also signed a $12 million contract with BMA to provide labour and supervision for development work at the Broadmeadow mine in Queensland.
“These, coupled with the award of a number of minor contracts and project extensions, and the increased volume of tender opportunities, increases our confidence in FY10 mining results,” Mann said.