Thiess bags new contracts worth $1.2 billion from KPC and Arutmin
Monday, October 13 2003 - 12:51 AM WIB
Thiess Pty. is a wholly owned subsidiary of ASX-listed Leighton Holdings Limited.
The company said the new works includes life of mine contracts in PT Arutmin Indonesia?s Senakin and Satui mines in South Kalimantan as well as at KPC's in Sangatta, East Kalimantan. Bumi Resources is also the owner of PT. Arutmin Indonesia.
?The new contract at KPC will increase our current operations at the mine to 12 million tons per annum and will generate US$550 million of revenue for Thiess Indonesia over the next five years,? said Thiess Managing director Roger Trundle.
?Thiess Indonesia has also negotiate 2-year agreement with KPC to assist the company with expansion of overall mine from approximately 18 MTPA currently to over 23 MTPA.This agreement involves production planning as well as management of plant and equipment,? he said.
Trundle said as part of the commitment Thiess had loaned US$40 million to KPC in the form of 5-year senior loan, secured against KPC assets. According to trundle, the loan forms part of 6.5-year amortizing debt package arranged by international financiers.
In addition, Thiess would procure $80 milion in new plant and equipment for the contract through leasing arrangement, said Trundle.
Thiess also extends its contract with PT. Arutmin Indonesia for the operation and expansion Satui and Senakin mine to a life of mine contract, which would add $650 million to Thiess indonesia?s work in hand for the next five years.(alex)