Petrosea signs $250m contract for E. Kalimantan coal project

ASX-listed engineering firm Clough Limited announced on Tuesday that its Indonesian subsidiary, PT Petrosea had signed a contract worth an estimated US$250 to provide mining service to PT Santan Batubara Coal.

?The five year contract, which is for overburden removal, coal recovery and loading at Santan?s Separi mine site in East Kalimantan, was officially signed on 16 January 2009 at PT. Santan Batubara head office in Jakarta,? Clough CEO John Smith said in statement.

In September 2008, Clough Limited reported that its Separi Block in Santan coal concession has an estimated JORC-compliant total resource of approximately 40 million tons, made up of 22 million tons measured, 8.9 million tons indicated and 8.6 million tons inferred.

?The results from the Separi block are encouraging and the joint venture is well advanced with its plans to produce the resource. Petrosea has led the construction of a 9km haul road and has committed US$42 million to a mine fleet sized to produce 2MTPA. Harum Energy recently completed the upgrade of the port facilities and we expect the first shipment early in 2009,?John Smith said on Sept 18, 2008.

The coal concession, which is located in East Kalimantan, is owned by PT Santan Batubara, a 50/50 joint venture between Clough?s 82 percent owned Indonesian subsidiary PT Petrosea and PT Harum Energy Indonesia. (denny)