The two-year contract has an additional one year option.
Work will start in July with the scope of works including the load and haul of pre-strip material.
Downer is the incumbent pre-strip contractor at Blackwater with the existing term due to expire on 30 June.
Downer CEO Grant Fenn, said he was pleased to renew the contract for a further two years and continue working with BMA at the Blackwater coal mine.
“Downer has a strong track record of providing mining services to BMA and helping it to drive efficiencies across its operations,” Fenn said.
“We look forward to extending our working relationship and continuing to deliver efficient solutions for the Blackwater coal mine.”