As part of the Broadmeadow sustaining operations project, the Leighton subsidiary will undertake 8 million cubic metres of earthworks and 12,000cu.m of concrete works.

The project is targeting completion in 2013 and also covers the construction of associated infrastructure, such as access roads, dams and drainage, conveyor footings and gates.

“Leighton Contractors has strong ties with the local Bowen Basin community and over ten years experience in delivering value-added services for BMA in Queensland,” Leighton Contractors executive general manager Mike Metcalfe said.

“Our local expertise and resources, coupled with our previous experience working at Broadmeadow, means we will bring considerable learnings to this project.”

The mine is adjacent to BMA's Goonyella open cut mine and is a punch longwall mining operation.

BMA plans to spend $900 million to develop a new mining area at the Broadmeadow mine, which is expected to increase the mine life by 21 years and lift annual capacity by 400,000 tonnes to 4.8 million tonnes per year run-of-mine in 2013.

Leighton shares are in a trading halt and consequently unchanged at $28.94 this morning.