Clough's Petrosea signs $58m deal for Indonesian coal project

Perth-based Clough Ltd's Indonesian subsidiary PT Petrosea Tbk has signed a contract worth around $58 million for design and construction work on the Pakar Coal Development Project, an open cut mine in East Kalimantan, the company has announced.

The full text of a company announcement is pasted below

Engineering and construction company Clough Limited (ASX:CLO) announced today that its Indonesian subsidiary, PT Petrosea Tbk has finalised the terms of a $US48 million coal contract.

Petrosea will work in alliance with client PT Ilthabi Bara Utama to perform works for the Pakar Coal Development Project, an open cut coal mine in central East Kalimantan producing thermal coal for both export & domestic consumption.

The Project team will be responsible for the design, procurement and construction of the 5mtpa mine infrastructure facilities including haul road, stockpiles and materials handling facilities at both the mine and river port locations together with all necessary support infrastructure. Petrosea will not require additional capital equipment to carry out this work which is expected to be completed by June 2008.

Clough Chief Executive Officer John Smith said this latest contract award demonstrates the continued success of the company in relationship contracting.

"Across the Clough group, the majority of our work is won or extended on the basis of good relationships with clients, and in this case it's pleasing to see Petrosea develop an alliance with a new client, which we believe bodes very well for this project and future operations," said Mr Smith.

PT Ilthabi Bara Utama is a new open-cut coal mining company in the Pakar Area of East Kalimantan. The Pakar Coal Development has a proven and probable coal reserve of 274 million tonnes and overall coal resources are approximately 3.3 billion tonnes.