Clough?s Petrosea gets $20 million contract extension from E. Kalimantan coalminer

Australian engineering and construction group Clough Limited announced on Thursday that its Indonesian subsidiary PT. Petrosea Tbk. had been granted US$ 20 million contract extension through to December 2004 of its long-term coal overburden stripping contract for coalminer PT. Gunungbayan Pratama Coal (GBP) in East Kalimantan.

The GBP contract was first awarded to Petrosea in November 1999. When completed last month after 52 months, the contract had generated US$100 million revenues for Petrosea.

David Singleton, CEO and Managing Director of Clough Limited, said: ?The extension of the GBP contract further confirms our decision not to proceed with the strategic goal to sell down the group?s interests in Indonesia.

?Opportunities are now emerging in the country which meet Clough?s new guidelines for acceptable contract margins, return on capital and levels of risk. This has given us much greater confidence of being able to achieve sound business growth in Indonesia and we are actively seeking similar extensions and new contracts in mining and construction throughout the country?.

Clough has 82 percent shares in the JSX-listed Petrosea.

GBP mines high quality coal in east Kalimantan which is exported to Asia and Europe through Balikpapan.(alex)