Mining industry service contractor WDS Ltd said on Monday that it has secured a two-year contract from BHP Billiton to carry out the resource giant's longwall block management and outbye services of its Illawarra Coal's Dendrobium mine site in New South Wales.

The company said that part of the outbye services to be rendered for BHP are roadworks, conveyor maintenance and pumping while the longwall block deal would cover a large contiguous section of coal.

WDS chief executive Terry Chapman said that the work agreement should deliver an estimated $10 million revenue to the company's coffer for the next two years, adding that a possible extension for the following third year could be re-negotiated later.

Mr Chapman said that the company is expecting the contract to commence at the soonest possible time as he stressed that WDS' various equipments and work crews have been deployed already and fully mobilised at the Dendrobium mine site.

He added that WDS and BHP have been engaged in business deals for some time now, recalling that "WDS have undertaken a range of materials handling and mining services projects for BHP Billiton over a number of years, including the initial construction and development of the Dendrobium mine."

Positively reacting to the announced deal, WDS stocks were trading at 46 cents as of 1524 AEST on Monday, jumping by seven cents or 17.95 percent from Friday's closing.