Leighton Holdings (ASX: LEI) today announced its subsidiary John Holland, which is one of Australia's leading and most diversified contracting, engineering and services providers, has been awarded a $348 million contract for the provision of mining services to the 'Plains' pit of the Jellinbah Coal Mine.

Mining production under the four year agreement with Jellinbah Mining Pty Ltd will start in April 2011. Early engagement will begin immediately to ensure a smooth transition of services, Leighton said.

The contract will include mine planning and design at the 'Plains' pit of Jellinbah Coal Mine, located two hours west of Rockhampton in Central Queensland. Drill and blast, overburden removal, coal mining, coal quality management, coal crushing, pit water management and environmental reporting services will also be delivered as part of the contract.

John Holland says mining continues to be a growth area for the company, with rising overseas demand for coal and other minerals driving investment in new resources projects across Australia.

"With the acquisition of new plant and equipment and the ongoing refinement of our mining service capabilities, we look forward to continued expansion in this area of our business," said John Holland's Group managing director Glenn Palin.

General Manager of John Holland's Mining business, Russell Cuttler, said "Today's award presents a fantastic opportunity for John Holland to continue its push into the Queensland mining sector."

Mobilisation of equipment to site is expected to be completed in April 2011.