Ausenco Limited (ASX: AAX) today announced it had been awarded a contract to provide project management and engineering support services for Bandanna Energy Limited’s (ASX: BND) Springsure Creek Coal Project in Queensland’s Bowen Basin.

Ausenco will deliver an engineered budget, schedule and execution plan to allow Bandanna Energy to finalise the design and capital cost of the project by 30 June 2014.

Ausenco CEO Zimi Meka said “We are delighted to be working with Bandanna Energy on the Springsure Creek project, the most advanced thermal coal project in the country.”

The Innovate phase contract further strengthens our work on hand at this intermediate phase of the project’s development where Bandanna Energy is scheduling to commence production in mid-2015.”

Stage 1 of the Springsure Creek Coal Mine Project involves a single underground longwall with a production capacity of 5.5 million tonnes per annum, with an estimated capital expenditure of $743 million.