Coalspur Mines has dumped Forge Group's still-active North American business as its preferred engineering, procurement and construction contractor, as the fallout from the failed engineering company's collapse continues.
Coalspur told the market ASX-listed contractor Sedgman will take over as preferred EPC provider for its flagship Vista thermal coal development in Alberta, Canada.
With Forge's Australian parent company falling into administration and then liquidation earlier this year, Coalspur said it had been prompted to review alternative EPC providers for the Vista project.
Forge Group North America, formerly known as Taggart Global, is continuing to trade as normal and has not been placed into administration.
Coalspur said while Forge had been a "very strong partner" for the company since being selected as preferred EPC contractor for the Vista project in June last year, the decision to change contractors would bring certainty to the business.
"I would like to thank the employees at Forge for their professionalism, exceptional effort and engagement during the past nine months," Coalspur chief executive Gill Winckler said.
"However today's decision has been made to provide certainty for Coalspur. We have the utmost confidence in Sedgman; their team is well known to us and they are certainly a world-class provider of coal processing and mine infrastructure."
Coalspur said Sedgman had participated in the front-end engineering and design process for Vista and was well-placed to step into the role of lead contractor.
It will commence transition work immediately, ahead of the finalisation of a detailed EPC contract.
Coalspur shares were trading 5.5 per cent higher at 19 cents at 10:52am WST.
