Thiess Wins $717.4 Million Curragh North Coal Mine Expansion Contract from Wesfarmers

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Researched by Industrial Info Resources (Sugar Land, Texas)--One of Australia's largest listed companies, Wesfarmers Limited (ASX:WES) (Perth, Australia), has awarded a $717.4 million contract to mining and construction major Thiess (South Bank, Queensland), for overburden removal at its Curragh North coal mine in central Queensland's Bowen Basin.

The contract is part of Wesfarmers' plan to expand mining operations in the area and increase its coal sales from the Curragh North Mine. Presently, the company's coal production is in the range of 6.5 million to 7 million tons per year. The augmentation project is likely to increase coal output to between 8 million and 8.5 million tons per year.

Since 2004, Thiess has been working on the Curragh coal mine project. With the new contract, the company will continue working on the project until 2020.

Under the contract, Thiess will clear layers of earth over the open pit coal mines and perform drilling, processing and maintenance of the mine. The company will also invest $44.8 million for the purchase of seven trucks, each with a payload capacity of 360 tons. The facility will use a loading-bucket system with a capacity of 110 tons.

From mid-2011, the mines are expected to operate on world-class machinery and infrastructure, including the world's largest earthmoving equipment. For the first time in Australia, new Bucyrus 495 HR electric shovels will be deployed.

Established in 1934, Thiess is a leading Australian mining and construction company and a fully owned subsidiary of Leighton Holdings Limited (ASX:LEI) (St. Leonards, New South Wales). The firm has successfully executed several large construction projects, including a $3.13 billion desalination facility in Victoria, the Snowy Mountains Scheme and a $3.76 billion airport link in Brisbane.

Thiess recently secured a one-year extension contract for the Tarong coal project near Kingaroy in Queensland. The $125.5 million extension contract will allow Thiess to continue mining, exploration and processing of the Meandu mines.

Wesfarmers was established in 1914 as a farmers' cooperative in Western Australia. Today, it is one of Australia's largest employers and listed companies, with business interests including supermarkets and retail stores, energy, chemicals, home improvement, fertilizers, insurance and industrial safety. The company operates Coles, a chain of department stores that employs 92,000 people across 750 stores. Wesfarmers also owns popular retail store chains such as Target and Kmart in Australia. In the energy sector, Wesfarmers holds stake in Air Liquide (EPA:AI) (Paris, France), Coregas Pty Limited (Sydney, Australia), and Wesfarmers LPG (Kwinana, Australia).

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