Engineering and infrastructure firm Downer EDI's mining division has secured long-term contracts worth over $1 billion with Peabody Pacific Pty Limited.
Under the agreement, Downer EDI will provide comprehensive mining services for Peabody's open cut coal projects at Millennium mine in Queensland and the Wambo mine located in New South Wales.
Downer EDI mining will provide labour, materials, transport and equipment services to the projects, it said in a statement to the Australian Stock Exchange.
Downer EDI chief executive Geoff Knox said the contract marks a significant milestone for the mining division from a challenging period and illustrates the effectiveness of the new management team.
"This award reinforces the company's strategy to build long-term client relationships and derive a greater proportion of its revenues from repeat work," Mr Knox said.
Mr Knox also said Downer has placed orders for additional large scale mining equipment to be delivered later this year.
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