May 23, 2019 - Ausdrill subsidiary, BTP has secured a further three year contract with Peabody Australia in its Hunter Valley and Bowen Basin coal mines, its second extension in two years.

BTP and Peabody’s original contract was firstly extended two years ago, marking the companies’ working relationship since April 2015.

Under the latest contract, Peabody has an option to extend by a further two years.

The $126 million agreement will see BTP continue to rent mining and ancillary equipment to Peabody in the two coal mining regions.

“We are delighted to have been awarded this contract extension and look forward to continuing to provide equipment and related services to Peabody, building on the strong relationship BTP has formed with Peabody over a number of years,” Ausdrill managing director Mark Norwell said.

Peabody boasts five mines across the Bowen Basin in Queensland and three in the Hunter Valley coalfields west of Newcastle.

The company’s two major customers as of 2018 were the United States and Japan. By 2019, Peabody was reallocating its investments toward greater seaborne thermal and metallurgical coal access to meet Asia’s growing demand.

Peabody reported a $US1.25 billion ($1.8 billion) group income during the March 2019 quarter.