Clough signs $215.5m deal

CLOUGH Engineering has won a $215.5 million coal mining contract in Indonesia.

Clough managing director Brian Hewitt said it would be the biggest contract on the group’s Asian order book. He said it would underpin the growth of Clough’s Indonesian subsidiary PT Petrosea Tbk.

The contract takes Clough’s order book to $1.2 billion – ahead of budget and well up on the year’s start figure.

Work starts on site in December in the East Kalimantan province for a fifty month contract period.

It involves stripping 132 million cubic metres of overburden for PT Gunungbayan’s (GBP) mine.

The high quality, low sulphur coal mined at the site is mainly sold to the Japanese market.

The overburden removal will expose a coal resource of about fifteen million tonnes which is part of total reserves of 170 million tonnes at the mine.

GBP plans to expand current product of 1.5 million tonnes a year to sales of four million tonnes a year.

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