Sedgman, which has been listed on the Australian Securities Exchange since 2006, will operate and maintain the mine’s primary, secondary and tertiary crushing plants and mobile equipment.

Under the one-year contract with McArthur River Mining, which includes a one-year option, Sedgman will also be responsible for supplying stockpiled run of mine ore to the plant.

Sedgman expects to pocket about $12 million per annum from the contract.

Sedgman managing director and chief executive Nick Jukes said the company had a proven track record of delivering efficient operations at McArthur.

“Sedgman has been operating the three-stage crushing and screening facility for over 11 years now and I am delighted that we continue to strengthen our relationship with Xstrata, one of the world’s leading diversified mining houses,” he said.

Last year, Xstrata approved a $US360 million ($A340 million) phase 3 expansion of the McArthur River mine which is expected to double capacity and result in 380,000t of zinc production annually from 2015.

Sedgman can look forward to securing more contracts at the mine in the future, with McArthur’s mine life expected to last until 2038.

McArthur River is already one of the world's largest zinc, lead and silver mines.

The news of the contract extension generated a flat response among Sedgman’s investors, with shares in the company slipping 2.8% to A86.5c.