The contract is expected to generate WDS $A10 million but there is also a possibility of an extension for a third year.
WDS is ready to quickly start the contract as equipment and work crews are already mobilised at the mine.
“We are pleased to return to Dendrobium Mine and add this to the list of mines WDS is currently servicing,” WDS chief executive officer Terry Chapman said.
“This project will continue our relationship with BHP Billiton Illawarra Coal.
“WDS have undertaken a range of materials handling and mining services projects for BHP Billiton over a number of years, including the initial construction and development of the Dendrobium Mine.”
Dendrobium started cutting panel Longwall 6 in February.
WDS shares lifted 18% yesterday to 46c.