Perth-based Clough Ltd's Indonesian subsidiary PT Petrosea Tbk has reached an agreement to expand contract mining activities at the Sanga Sanga coal operations, the company has announced.
The full text of a Clough announcement is pasted below
Engineering and construction company Clough Limited (ASX:CLO) announced today that its Indonesia subsidiary, PT Petrosea Tbk had reached an agreement with PT Sanga Coal Indonesia (SCI) to expand contract mining activities at the Sanga Sanga Operations. This follows SCI's acquisition of additional mining areas adjacent to the current mining operation.
The requirements of the amended contract schedule will see the overburden and coal targets increasing by approx 70% on an annualised basis, with revenues increasing by approx US$36 million over the remaining life of the Sanga Sanga Coal Mining Project.
"Petrosea continues to enjoy strong demand for its mining and mine development capabilities. This contract extension is pleasing and demonstrates Petrosea's proven capability to deliver real value to its clients," stated John Smith, Clough Chief Executive Officer.
Petrosea will expand its mining fleet with investment in US$16 million of new plant and equipment to support the contract extension. Additional revenues from the extension contract will start immediately.
Petrosea initially commenced a four year Mine Services Contract at the Sanga Sanga Mine Site with PT Mitra Internusa Persada (MIP) in September 2005. In agreement with Petrosea, the Mine Services Contract was assigned by MIP to SCI in July 2006. SCI coal is primarily shipped to offshore customers within the Asian region.
