Leighton International awarded US$125 million extension to coal mine in Indonesia
Monday, July 16th, 2007
Leighton International has been awarded a US$125 million, three-year contract extension for mining services for TANITOcoal at its MSJ coal mine in Indonesia.
The contract extension follows the announcement earlier this month that Leighton had secured two new coal mining contracts in Indonesia worth almost US$700 million.
Managing Director of Leighton International, David Savage, says that the new contract is testament to Leightonâ€™s strong performance on the project.
â€œWeâ€™ve been able to consistently demonstrate our ability to add value to our clientâ€™s project.
â€œThe safety and efficiency of our operations is a major attraction to clients like TANITOcoal and will ensure we are able to benefit from the continued boom in resources.
â€œWe have now won over US$800 million in new mining work in Indonesia over the past month, and our work in hand there is approaching US$1 billion,â€ he said.
Leighton has been operating the mine since May 2004, when it signed an initial threeyear contract. The scope of work for the extension has been significantly increased, requiring Leighton to produce almost eight million tonnes of coal over a three-year period.
The new contract includes the removal of overburden, the loading and transportation of coal from the mine site to the port, and maintenance of the mineâ€™s haul road. Leighton built the haul road from the mine site to the port area under a separate contract in 2004.
The extension will require two additional truck and shovel fleets and associated support equipment.
TANITOcoal has a crusher and load-out facility on the Mahakam River. The mine is part of TANITOcoalâ€™s expansion plans and is located approximately one and a half hours drive from Samarinda, East Kalimantan on the northern side of the river.
PT Tanito Harum is one of Indonesiaâ€™s first private coal mining companies. The company has been operating for more than 20 years and is currently producing over seven million tonnes of coal per annum.