The A$600 million (US$410 million) contract includes full mining services and operation of the mine's coal handling and preparation plant (CHPP).

Downer inked its first contract with Stanwell and Meandu in 2013; that transaction expires on June 30, 2020. The new contract will begin on July 1 and will extend for five years.

Downer CEO Grant Fenn noted that, in addition to Meandu, the company offers mining services to a collective of other Queensland operations including Blackwater, Commodore and Goonyella.

Meandu, located in the South Burnett region, has the capacity to supply as much as 7Mt/y to its neighbouring Tarong power stations. Work has been active at the mine since 1978 and it currently has five working pits.

Stanwell, which owns coal, gas and water assets, is Queensland's largest electricity generator.