HWE bags $1.2 billion mining contract from KPC

Australian mining contractor Henry Walker Eltin (HWE) said Friday it had secured US$ 1.2 billion contract from East Kalimantan coalminer PT. Kaltim Prima Coal (KPC) for mine infrastructure development and the supply of coal mining services over the next 10 years at KPC?s new Bengalon mine.

The contract is subject to a condition retaling to HWE being placed in a preferred position under the existing KPC finance structure. The KPC contract is HWE?s largest contract ever.

First coal is expected to be mined and shipped before the end of current calendar year.

The mine development work will be undertaken using locally sourced equipments comprising existing HWE fleet and local plant hire. HWE said the contract would require plant and equipments worth $120 million for the initial coal output target of 6 million tons per annum.

Infrastructure works include development of the port area, construction of the haul road and support facilities. Under the contract, HWE has first right to work with KPC on the development and expansion of the mine over time.

Bengalon coal reserves, which is estimated in excess of 160 million tons, is contained in four pit shells some 25 kilometers north of KPC?s existing operations in Sangatta. Bengalon is a convetional truck and shovel operations with ROM coal trucked on 25 kilometers haul road to the port crusher and loadout facility. (alex)