Leighton secures three-year mining contract from Tanito Harum

Australian-based contractor Leighton Holdings Limited announced Tuesday its Indonesian subsidiary PT Leighton Contractors Indonesia had secured a three-year contract worth A$80 million for mining operations at PT Tanito Harum?s new coal mine in East Kalimantan.

?The scope of work includes the removal of overburden, the loading and transportation of coal from the mine site to the port, and maintenance of the mine?s haul road,? Leighton said in statement to the Australian Stock Exchange.

Leighton is currently constructing the 8.5-kilometer haul road from the mine site to the port area under a separate contract. The haul road is expected to be completed in July.

According to the statement, Tanito is currently constructing a coal processing and barge loading facility on the Mahakam River.

?Production mining will commence later this year,? Leighton added.

Tanito operates a concession area of around 35,000 ha in Kutai Kartanegara Regency. The company's current production level is around 3 million tons per year, most of which goes to the export market.(robert)