Petrosea bags $36m mining expansion contract at E. Kalimantan coal mine

ASX-listed engineering and construction company Clough Limited announced on Friday that its Indonesian subsidiary PT Petrosea Tbk had reached an agreement with PT Sanga Coal Indonesia (SCI) to extend the contract to conduct mining activities at the latter's operations in East Kalimantan.

The amended contract schedule will see the overburden and coal targets increasing by approximately 70 percent on an annual basis, with revenue increasing by approximately US$36 million over the remaining life of the Sanga Sanga coal mining project, Clough said.

According to Clough, Petrosea will expand its mining fleet with an investment of $16 million in new plant and equipment to support the contract extension. Additional revenues from the contract extension will start immediately.

Petrosea has initially a four year mine services contract with PT Mitra Internusa Persada (MIP)starting in September 2005. In an agreement with Petrosea, the contract was assigned by MIP to SCI in July 2006. SCI coal is primarily shipped to offshore customers within the Asian region. (denny)