CIMIC gets $2.5bn extension

CIMIC Group’s mining services business has received a $2.5 billion contract extension with Jellinbah Group for work at the Lake Vermont coal mine in Queensland.

CIMIC announced on Friday its subsidiary Thiess, which operates the Lake Vermont mine, will continue its services for a further five years including drill and blast, topsoil and overburden removal, and water management and rehabilitation of final landforms, as well as maintain the coal handling and preparation plant (CHPP).

The contract extension will begin from January 1 next year.

Thiess has provided mining services to Brisbane-headquartered Jellinbah Group since 2007, Thiess managing director Douglas Thompson said.

"We've developed a strong working relationship with Jellinbah Group since commencing work at Lake Vermont," he said.

"We're excited to bring fresh thinking and new solutions to support the mine's continued, sustainable evolution over the next five years."

CIMIC’s mineral processing company Sedgman also provides operations support to the CHPP at Lake Vermont.

CIMIC Group chief executive Juan Santamaria said the contract extension demonstrated Thiess’ ability to turn insight and optimisation into greater certainty for its clients.

CIMIC was trading 3.2 per cent lower at 1:55pm AEST to $21.60.