Previously Sedgman was awarded a $A75 million contract with the mine co-owner, Q Coal, without tender for an 800 tonne per hour CHPP at the Sonoma site.

That contract has since been expanded by a further $25 million for Sedgman to operate the plant as the mine enters Stage 2 development later this year.

The new operations agreement covers the first five years of operation or about 25 million tonnes of feed coal.

Located south of Collinsville at the northern end of the Bowen Basin, the Sonoma mine is a joint venture between Australian Q Coal, US iron ore producer Cleveland Cliffs, Japan’s JFE Shoji and Taiwanese steel producer China Steel.

It will produce coking and thermal coal, with a JORC resource estimate of 107Mt.

It is the fifth operations contract awarded to the company, following contracts at the Coppabella, Moorvale, Blair Athol and Middlemount coal mines.

Sedgman is also pursuing opportunities in the global metals industry after its recent acquisition of operation services group Pac-Rim and mineral process engineering company Intermet.