The cost reimbursable contract, which has an initial term of five and a half years, will begin in January 2013 and have a value in the range of $600 million to $800 million, the company said in a statement.
Downer will provide a total mine service to TEC Coal, including mine management, planning, drilling, overburden removal (including dragline and truck-and-shovel operations), coal mining, coal processing, rehabilitation, and maintenance of mobile and fixed plant.
TEC Coal will provide the majority of the required plant and equipment.
The contract with TEC Coal is a major win for Downer EDI, which also has contracts with Boggabri Coal in the Gunnedah Basin of New South Wales to 2016, Peabody Energy’s Wambo mine in the Hunter Valley till 2013, and the BHP Billiton Mitubishi Alliance’s Gooonyella Riverside in Queensland until 2015.
Downer EDI believes its operator-training simulators enable it to train operators in the use of a range of heavy equipment in a safe manner.
The simulators provide a safe environment in which operators can experience virtual scenarios without the risk of personal injury or damage to equipment, it said.
With several different types of training and assessment options, including emergency response scenarios, correct machine operation and productivity, the simulators provide comprehensive training programs to operators irrespective of skill level, according to the company.