Ausenco Minerals today signed the contract for engineering, procurement and construction management (EPCM) services for the plant.

The deal marks the group's first entry into the Australian coal market.

“With over 80 percent of Ausenco’s projects being delivered outside Australia, it is exciting to be awarded a coal project in Australia where capital expenditure in the coal sector is anticipated to be significant in the next five years," Ausenco CEO Zimi Meka said.

“Over the past 12 months, Ausenco has been strategically developing its capacity in coal in line with broader objectives of diversification and growth.

“We are now seeing the fruits of our commitment and perseverance in breaking into this competitive market."

The 5 million tonne per annum capacity wash plant will ramp up in the third quarter of 2009 when the Inbye Mining Services longwall is in full swing.

Construction on the expansion of Carborough Downs began last month, with joint venture partners Vale (80%), Tata Steel, Nippon Steel and Posco (all 5%) and JFE Steel and JFE Shoji (2.5% each) investing $A401 million to develop the operation.

Ausenco shares were trading steady mid-morning at $15.