Engineering firm Downer EDI Ltd (ASX: DOW) announced on Wednesday that it has sealed contract agreements amounting to about $2 billion with the BHP Billiton-Mitsubishi Alliance, which cover work projects at Goonyella Riverside and Norwich Park mines, both located at the Bower Basin in central Queensland.

Set to last by June 2015, Downer said that work projects include the loading and hauling of pre-strip material with corresponding drill and blast services at the Goonyella mine site while another undertaking of load and haul of pre-strip materials would also be required at the Norwich mine site.

The company said that new equipments, with an estimated total worth of $190 million, are set to be deployed on both sites over the next 12 months and Downer said that funding for the fresh machines would be sourced from the company's operating cash flow, with additional new finance and operating leases.

Downer expressed confidence that it has access to sufficient funding for the BMA deals, citing that the company is the preferred bidder on Fortescue Metals Group's work project at its Christmas Creek exploration site.

The company is also upbeat that it is well positioned to reach its target leverage range of 25 to 35 percent and as of 1022 AEST on Wednesday, Downer shares were trading at $4.79, as its stocks value shot up by 24 cents or 5.27 percent from previous trading day.