Petrosea bags contract extension from Gunungbayan

Australian engineering firm and contractor Clough Limited announced on Friday that its 82 percent-owned subsidiary PT.Petrosea Tbk. has signed a 4-year coal overburden stripping contract extension with East Kalimantan miner PT.Gunungbayan Pratamacoal (GBP).

Clough said the contract worth US$140 million.

GBP first awarded the contract to Petrosea in November 1999, followed by 8-month extension until December 31 this year.

Clough said by the end of Petrosea?s current contract, work with GBP would have generated cash of more than $120 million and the movement of more than 100 million cubic meters of material over the past five years.

Clough also said with the extension, Petrosea would commit $28 million in capital investment over the next two years for the new refurbished and major load and haul plant and ancillary equipment at GBP minesite.

GBP mines high quality, low sulphur coal in Muara Pahu district in East Kalimantan, exporting the products to Asia and Europe through Balikpapan as semi-soft coking coal and high calorivic value coal (HCVC).

GBP plans to produce 4 million tons of coal in 2005. (alex)