Under the $142.8m 2-year contract, WDS will construct 2km long drifts which will provide access for the workforce, materials and a permanent conveyor to the Harrow Creek upper coal seam and will also establish permanent services needed for mine development.
The drifts will be used in the future to gain access to other coal seams where Reserves have been identified.
The Eagle Downs hard coking coal mine development is managed by Eagle Downs Coal Management (EDCM), a company jointly owned by Aquila Coal, a wholly owned Aquila Resources subsidiary and Bowen Central Coal, a wholly owned Vale subsidiary.
Over a period of 2 years, the project is expected to generate $142.8m of revenue.
WDS managing director and chief executive officer Terry Chapman said that the project builds on diverse underground service offerings of WDS.
"This project is enabled by our strong balance sheet and extends our earnings pipeline. Our guidance for net profit for FY14 remains in the range of $10 to $12m" added Chapman.
WDS will use 300kW roadheaders to meet the requirements of the project while WDS’ Kangaroo Point and Cameron Park facilities will also support the project.
Mobilisation is scheduled to begin in the first half 2014 and the work is expected to be completed by the end of 2015.
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