Engineering and construction company Clough Limited has announced today that its Indonesia subsidiary, PT Petrosea Tbk has 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.
"This contract extension demonstrates our capability and capacity in delivering integrated services to the mining sector in Indonesia and continues the good relationship that has been developed with the client", stated John Smith, Clough Chief Executive Officer.
Petrosea will work in an alliance with the client to perform and manage all mining activities at the mine site. The alliance contract approach promotes a transparent fast track approach to the mining operations and includes a "risk/reward" component that encourages continuous improvement leading to "win-win" outcomes through the contract period.
The mine is an open cut coal mine in central East Kalimantan that will produce thermal coal at an initial rate of 5Mtpa for both export and domestic consumption. Mining is expected to commence on site in March 2008. This initial contract is for a 5 year period.
To cater for this increased workload Petrosea will further expand its mining fleet through the investment of an
additional US$23 million in new plant and equipment.
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 reserve of 274 million tonnes and an overall coal resource of approximately 3.3 billion tonnes.
