Under the A$85m($84.5m) contract, TSJV will design, procure, construct and commission the CHP plant at the Codrilla coal mine in Bowen Basin, Australia.

The CHP plant will have a production capacity of 600 tonnes per hour.

TSJV has commenced the work, with practical completion due in the fourth quarter of 2013.

Mining operations at the Codrilla mine are expected to start in 2012, with subject to the receipt of final regulatory approvals.

Sedgman managing director and CEO Nick Jukes said that the firm has till date built three CHPPs for Macarthur Coal and continuinto operate these CHPPs, along with stockpile management and train loading functions.