Sedgman has won the EPC contract for Groote Eylandt Mining's (GEMCO) manganese mine expansion.

The $133 million contract will see Sedgman provide the design, supply, fabrication, construction, and commissioning of a sands benefication plant, port stockpile expansion, and associated infrastructure at the site.

The work will increase the facility's capacity by 500 000 tonnes per annum by re-processing manganese ore stored in tailings stockpiles.

Sedgman CEO Peter Watson said the contract was directly negotiated with GEMCO after a period of close collaboration over the last two years.

"Our involvement in this project commenced at the early feasibility study stage and we are excited that we have been chose to delivery the project," he said.

"This is another example of the strength of our 'Create and Build' model as we were able to develop a strong relationship with and demonstrate value to GEMCO from concept through to execution.

"The sands benefication plant utilises process technologies that we have proven in other commodities and we have been able to leverage this experience together we our track record of project delivery in remote locations.

"It also marks another important milestone in our diversification strategy, with over 50% of our current order book in commodities other than our traditional coal market."

This latest win comes only two days Sedgman was awarded the $59.8 million EPC contract for Alcoa's Kwinana filtration plant.

The GEMCO operation was previously part of BHP, but will be spun out into the as yet unnamed company, which will also contain BHP's Illawarra Coal assets, TEMCO, the Cannington mine, and the alumina refinery at Worsely.

• [Editor:Sophie]