30/11/2007 - 13:27

Clough makes $222m from extra coal contracts

30/11/2007 - 13:27

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Engineering and construction company Clough Ltd has announced that its Indonesia subsidiary, PT Petrosea Tbk, has been awarded two additional coal hauling contracts with a combined value of US$197 million ($222 million).

Clough makes $222m from extra coal contracts

Engineering and construction company Clough Ltd has announced that its Indonesia subsidiary, PT Petrosea Tbk, has been awarded two additional coal hauling contracts with a combined value of US$197 million ($222 million).

The two contracts relate to product coal hauling services from the Pakar mine to the river port and the coal processing and port handling services where Petrosea will be reponsible for all operations and maintenance of the mine and river port fixed facilities.

These two additional contracts follow on from the Mine Development and Contract Mining services contracts.

Petrosea has now secured a total of US$390 million in contracts from the PT Ilthabi Bara Utama group in relation to the PAKAR project.

Petrosea contracts cover mine development engineering and construction, and all mining operations in a "pit to port" total service solution for a 5 year period.

Petrosea will work with IBU under an alliance contract format. The alliance contract promotes a transparent fast track approach and includes a "risk/reward" component that encourages continuous improvement leading to "win-win" outcomes through the contract period.

"Petrosea is proud to have been selected as the IBU group partner in delivery of a total mine development and operation solution for the Pakar project. Petrosea's flexible contracting approach, its ability to listen and understand its client's needs and its full service capability from feasibility studies to construction and mining operations makes Petrosea unique in the Indonesian market," stated John Smith, Clough Limited Chief Executive Officer.

"This is an excellent outcome that highlights the good relationship that has been developed with
the IBU group."

The Pakar mine is an open cut coal mine in central East Kalimantan producing thermal coal at an initial rate of 5Mtpa for both export and domestic consumption. Mining is expected to commence on site in March 2008 with an initial 5 year contract period.

PT Ilthabi Bara Utama is a start up open-cut coal mining company in the Pakar Area of East Kalimantan. The Pakar Coal project has proven and probable coal reserves of 274 million tons and an overall coal resources of approximately 3.3 billion tons.

Clough Limited announced yesterday that its PT Petrosea Tbk had been awarded a long term alliance mining contract valued at approximately US$145 million ($164m).

The contract for PT Ilthabi Bara Utama is for all aspects of the mining operations at the Pakar Coal Mine Project and follows on from Petrosea's success in being awarded the initial Mine Development contract for Pakar in July 2007.

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