Petrosea gets additional $197m services contracts from Ilthabi

Engineering and construction company Clough Limited announced on Friday that its Indonesian subsidiary, PT Petrosea Tbk, had been awarded two additional contracts for a five year period with a combined value of US$197 million from East Kalimantan coal miner PT Ilthabi Bara Utama.

Under the two contracts, Petrosea will haul coal from Ilthabi's Pakar mine to the river port and process and handle the coal at the port. Petrosea is also responsible for all operations and maintenance of the mine and river port fixed facilities, Clough said in a statement.

The two contracts add to two contracts awarded in September and earlier this month by Ilthabi to Petrosea to develop the former's coal mine. Petrosea has thus secured a total of $390 million in contracts from Ilthabi in relation to the Pakar project, the company said.

The Pakar mine is an open cut coal mine in central East Kalimantan producing thermal coal at an initial rate of 5 MTPA for both export and domestic consumption. Mining is expected to commence on site in March 2008.

PT lithabi Bara Utama is a start up open-cut coal mining company in the Pakar Area of East Kalimantan. The Pakar Coal project has proven and probable coal reserves of 274 million tons and an overall coal resources of approximately 3.3 billion tons. (denny)