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CIMIC Group’s (ASX:CIM) Sedgman receives $120M contract extension

ASX 200
ASX:CIM
22 December 2020 18:45 (AEDT)
CIMIC Group (ASX:CIM) - Executive Chairman, Marcelino Fernández Verdes

Source: Global Construction Review

CIMIC Group’s (CIM) minerals processing company, Sedgman, has received a contract extension at the Mount Pleasant mine in NSW.

The contract is for operations and maintenance services and the new extension is expected to generate revenue of $120 million, bringing the overall revenue from the contract to $200 million.

Under the contract, Sedgman will operate and maintain MACH Energy’s Mount Pleasant coal handling and preparation facility for a further three years.

Sedgman is a leading provider of minerals processing and associated infrastructure solutions to the global resources industry.

“Sedgman and the CIMIC Group have a strong history with MACH Energy which we’re pleased to continue,” CIMIC CEO Juan Santamaria said.

“Sedgman’s leadership in minerals processing will ensure maximum resource recovery for our long-term client,” he added.

Notably, Sedgman completed the construction at this facility and have been operating the plant since 2019.

“This contract is testament to the partnership we have forged with MACH Energy, and the integration of our engineering and operations capability,” Sedgman Managing Director Grant Fraser said.

Yesterday, CIMIC’s essential service subsidiary, Ventia, won two contracts with Anglo American and Telstra (TLS).

On market close for the day, CIMIC is down 2.47 per cent and is trading at $24.85 per share.

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