Sydney, Apr 3, 2008 (ABN Newswire) - Downer EDI Limited (ASX: DOW)(PNK: DNERF) today announced that the company's Mining Division, Downer EDI Mining, has signed long-term contracts with Peabody Pacific Pty Limited (Peabody) for its Millennium and Wambo open cut coal mining projects.

This follows the announcement on 21 December 2007 that Peabody had selected Downer EDI Mining as the preferred tenderer for these projects.

With a combined value in excess of $1 billion over 5 years, the effective commencement date of the contracts is 1 April 2008.

Under the contracts, Downer EDI Mining will provide comprehensive mine services for Peabody including open cut and related mining services at the Millennium Mine, situated approximately 60km from Moranbah, in Queensland and the Wambo Mine, located approximately 20km from Singleton in New South Wales.

Downer EDI Mining will provide all labour, supervision, materials and transportation for the two projects. Downer EDI will also provide all plant and equipment necessary to deliver run of mine coal to the coal processing plant at Millennium and further plant and equipment to support the Peabody equipment at Wambo. Drilling and blasting will be performed by Downer EDI Mining with bulk explosives supplied by the company's Blasting Services group.

The Chief Executive Officer of Downer EDI, Mr Geoff Knox, said the contract signing marked another significant milestone in the re-emergence of the Mining Division from a particularly challenging period and is testament to the quality of the new management team in place.

"This award reinforces the company's strategy to build long-term client relationships and derive a greater proportion of its revenues from repeat work. The contract will operate on co-operative and open book principles and is evidence of the relationship Downer EDI Mining's new leadership team has developed with Peabody.

"In addition, and as a response to recent demand, Downer EDI Mining has now placed orders for additional large scale mining equipment to be delivered later this year. This will be an important part of our strategy to build on the success of the Peabody contract awards and deliver additional new contracts," Mr Knox said.

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