Release: Clough Limited updates Santan Batubara coal concession

(29 July 2008)--Engineering and construction company Clough Limited today provided an update on the Santan Batubara coal concession project. The coal concession, which is located in East Kalimantan Indonesia, is owned by PT Santan Batubara, a 50/50 joint venture between Clough?s 82% owned Indonesian subsidiary, PT Petrosea, and PT Harum Energy Indonesia.

Whilst drilling is now complete on the first of four blocks, JORC results are not expected until October 2008. However based on initial findings, and subject to satisfactory JORC results, Santan Batubara is anticipated to provide a profitable addition to PT Petrosea?s current operations. As a result, PT Santan Batubara has commenced significant initial construction works.

PT Santan Batubara is developing the mine plan, with the haul road and supporting infrastructure also currently under construction. Port facilities are being constructed by partner Harum Energy. In addition, PT Petrosea has committed USD42 million of mining equipment to support operations. The mining equipment includes five mine fleets, comprising four Liebherr R9250 and one Liebherr R984 excavators. Each excavator is supported by four Cat 777D trucks.

In sizing the mining equipment, PT Petrosea has drawn on its experience in operating its fleets on similar sites in the region which produce circa two million tonnes of coal per year. However, the specific output from Santan Batubara remains dependent on the JORC results and the final mine plan.

Subject to satisfactory JORC results, the first shipment of coal is targeted for early 2009.

Further updates will be provided once the JORC report is finalised. (end of release)