Downer EDI Ltd (ASX:DOW) has announced that its Mining Division has signed contracts of around $2 billion with the BHP Billiton Mitsubishi Alliance.
The company says that the contracts are for work at the Goonyella Riverside and Norwich Park Mines in the Bowen Basin in Central Queensland until June 2015.
Downer has advised as a result of the contract productivity is expected to increase substantially at both mines.
The deal will see $190 million of new equipment available over the next year, funded through operating cash flows, new finance and operating leases.
Downer says it has ample funding for the BHP Billiton Mitsubishi Alliance contracts, and also the Fortescue Metals Group Ltd (ASX:FMG) contract at Christmas Creek, for which Downer is a preferred bidder.
Downer EDI reported a profit of $189.38 for the year ending 30 June 2009.
DOW Price at posting:
$4.63 Sentiment: None Disclosure: Held
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