Thiess, Monadelphous Win Caval Ridge Mine Contracts Worth $225 Million to Build CHPP

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Researched by Industrial Info Resources (Perth, Australia)--BHP Billiton Mitsubishi Alliance (ASX:BHP) (BMA) has awarded two major contracts to Thiess, a subsidiary of Leighton Holdings, and Monadelphous Group, worth a total of $225 million, for the construction of a coal-handling and preparation plant (CHPP) for its Caval Ridge coal mine in Bowen Basin, Queensland.

The contract has two aspects where Monadelphous will be constructing the coal-handling plant and Thiess will undertake the actual coal preparation plant construction. A contract was awarded to Monadelphous in November 2012 for an estimated value of $100 million, which includes the structural, mechanical and piping works support.

This is in addition to two existing contracts awarded to Thiess by BMA. The other two are a $180 million contract for the earthworks, including early site works, construction of haul roads and drainage infrastructure, and a $90 million contract for construction of a rail spur connecting the existing Blair Athol Line for the transportation of coal. The CHPP will have a design capacity to process about 14 million tons per annum of ROM coal through three 800-ton-per-hour modules that will produce an estimated 5.5 million tons per annum of hard-coking coal. The plant also will process an additional 2.5 million tons per annum of product coal from the neighbouring Peak Downs mine, which will be transported via conveyor. Coal will be exported through the Hay Point Coal Terminal, which is currently undergoing an expansion to increase the current 44 million-ton-per-annum capacity to 55 million tons per annum by mid-2014.

The proposed $4.2 billion mine and plant development is considered the largest coal-producing mine in Australia, and it is expected to start production by late 2014. Development also consists of fly-in-fly-out village for 400 employees of the mine that is to be constructed in Moranbah.

Bechtel International has been overlooking Caval Ridge project as an engineering, procurement, construction and management contractor alongside BMA's other projects in Queensland, such as the Hay Point port expansion, Crinum North and Daunia.

"We have finished the engineering and procurement for the Caval Ridge development and are currently looking at a major construction kick-off sometime during March to April 2013," said Bechtel Project Manager Kevin Ballino.

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