Clough secures $42m coal contract extension in Indonesia

Perth engineering and construction company Clough Limited has announced its Indonesian company, PT Petrosea Tbk, has won an additional $42 million contract on top of its existing contract at the Muara Pahu coal mine in East Kalimantan.

The original contract to carry out overburden stripping operations for PT Gunungbayan Pratamacoal was awarded to Petrosea in November 1999. The contract was extended in December 2004 when Petrosea and GBP signed a $190 million agreement for a four year extension.

Clough chief executive and managing director David Singleton said the latest contract demonstrates the importance of strengthening its regional presence within Indonesia to access growth opportunities in the minerals sector. Petrosea will not need to make further capital expenditure to carry out this work.

"Indonesia is an important part of Clough's regional strategy and we are pleased to see Petrosea's continued progress in mining activities," said Mr Singleton.

"The additional contract work for GBP also demonstrates that the relationship contracting approach employed throughout Clough is again delivering results."

GBP mines high quality coal in the Muara Pahu District of East Kalimantan. The resource is exported to Asia and Europe through Balikpapan as Semi Soft Coking Coal and High Calorific Value Coal.