The two-year contract is expected to start this July with an option to extend it for one more year.

Scope of works under the contract includes loading and hauling of pre-strip material.

Downer is already serving as the pre-strip contractor at Blackwater mine and the terms of the existing contract is expected to expire at the end of this month.

Downer CEO Grant Fenn said: "Downer has a strong track record of providing mining services to BMA and helping it to drive efficiencies across its operations.

"We look forward to extending our working relationship and continuing to deliver efficient solutions for the Blackwater coal mine."