Sedgman built the first CHPP in Mongolia at Energy Resources’ UHG mine and landed a $19 million engineering, procurement, construction and management contract for the second stage development of the plant.

The Queensland-based engineering company also inked an operational readiness contract and a three-year CHPP management contract at the mine for another $12 million.

“We are very pleased to be expanding our relationship with Energy Resources in one of the world’s most prospective coal regions,” Sedgman chairman Russell Kempnich said.

“These contracts are very significant for Sedgman. We are very proud of our work on the coal plant at UHG, a development which is setting the standard in a region of Mongolia that is forecast to grow rapidly to meet the coal demands of China’s major steelmakers.”

Leighton Asia, the dominant mine operator in Mongolia, is ramping up UHG to 10Mtpa run-of-mine by June 2011.

Sedgman expects its three-year CHPP operations contract to start in the June quarter.

Leighton started operating at the open cut mine back in April 2009 with production reaching 1.8Mt within eight months.

Major Mongolian conglomerate MCS is the biggest stakeholder of Energy Resources.