Petrosea secures $42m coal mining contract from Gunungbayan

Australian engineering and construction company Clough Limited announced Monday its Indonesian unit, PT Petrosea Tbk, had won another contract worth $42 million from PT Gunungbayan Pratamacoal (GBP) for overburden-stripping service at the Muara Pahu coal mine in East Kalimantan.

The original contract was awarded by GBP to Petrosea in November 1999. The contract was extended in December 2004 when Petrosea and GBP signed a $190 million agreement for another four year.

GBP mines high quality coal in the Muara Pahu District of East Kalimantan. The coal is exported to Asia and Europe through Balikpapan as Semi Soft Coking coal (SSCC) and High Calorific Value Coal (HCVC).

Clough Limited Chief Executive Officer and Managing Director David Singleton said the latest contract demonstrates the importance of strengthening its presence in Indonesia to access growth opportunities in the country's minerals sector. Petrosea will not need to make further capital expenditure to carry out this work.

?Indonesia is an important part of Clough?s regional strategy and we are pleased to see Petrosea?s continued progress in mining activities,? Singleton added. (denny)