The agreement is for the provision of mine planning, design and project execution services for the AEL coal mines in India.

The TSA has an initial value of $2 million, takes effect in July 2016 and has an initial term of 12 months.

The services include technical and operational support for existing AEL coal mines and technical review of the bids for the Indian coal block auction.

Downer CEO Grant Fenn said the signing of the TSA builds on the excellent relationship between Downer and Adani and opens an opportunity in a new market for the Downer Group.

Downer has also signed a two year extension to its contract to provide mining services at Stanwell Corporation’s Meandu Mine in South East Queensland.

Meandu mine delivers approximately 5.5 million tonnes of product coal per year to the adjacent Tarong and Tarong North power stations.

Downer has been providing mining services at Meandu since January 2013 and the completion date for the original contract was June 2018. Downer has now signed a two year extension, to June 2020, valued at approximately $250 million.

Fenn said the contract extension reflected Downer’s strong performance and its ongoing commitment to deliver cost savings and operational improvements at the mine.