Leighton won the contracts through its subsidiary Thiess, which would be responsible for building the infrastructure, then operate the Chatispur coal project for 20 years, in Jharkhand state.

""The long term contract between Thiess India and Abhijeet Group creates a solid foundation for the growth of our business in India,"" Thiess Asia chief executive Bruce Munro said.

Munro said over 115 million tons of coal would be mined over the next 20 years and development work will begin this month and mining to start in 2009.

The mine would have a maximum capacity of 6.75 million tons a year and would supply coal to steel plants and to a nearby 1,100 megawatt power station.

Leighton share was up 6.5%.