The company will also begin negotiations on an additional three-year agreement and will work with IPCM to finalise contract terms and scope of work for a full service mining operations contract for work at the Isaac Plains open cut coal mine.

Isaac Plains is currently a joint venture between Brazilian giant Vale and Aquila Resources.

Earlier this month Aquila gained Foreign Investment Review Board approval for offloading its 50% stake in the Isaac Plains mine for $430 million to Japan’s Sumitomo group.

John Holland’s scope of work will include clearing, topsoil stripping, drill and blast, truck excavator waste removal, coal mining, rejects haulage, dump profiling and rehabilitation works.

Approximately 3.6 million tonnes of run of mine coal will be moved and will pass through the mine over the next 12 months.

John Holland Group managing director Glenn Palin said the award reflected the diversity of its skills across the energy and resources sector.

“This agreement provides an opportunity to further develop our mining skills and capabilities, which complement our broader skills in energy and resources, including our specialist engineering capabilities in ports construction and in the delivery of large-scale materials handling infrastructure,” he said.

“Our long-term strategy is to use these skills, along with our capabilities as an operator and maintainer of major transport networks, to develop and deliver fully integrated mine operations to port services for our clients.”

John Holland energy and resources executive general manager Brendan Petersen said the extension demonstrated the client’s confidence in the company.

“John Holland is a unique mining contractor and has worked hard to develop our relationship with Isaac Plains Coal Management and improve our performance over the full term of the original contract,” he said.

“Investment in new equipment and resources has boosted productivity during the contract’s original term and we look forward to working closely with Isaac Plains Coal Management to finalise contract terms and discuss new ways to support the efficiency of the Isaac Plains operation.”