Thiess Indonesia awarded US$500 million contract extension

PT Thiess Contractors Indonesia has signed a US$500 million contract with PT Bayan Resources Tbk which extends the existing contract by three years for further development and operation of PT Teguh Sinar Abadi and PT Firman Ketaun Perkasa Coal mines, near Melak in East Kalimantan.

Teguh Sinar and Firman Ketaun are subsidiaries of Bayan Resources. The total value of the amended contract secured by Thiess for works on the two mines now increases to $1.2 billion.

The contract amendment sets a new production target of 5 MT of coal and 70 MBCM of overburden removal per annum. The agreement will take effect on 1 January 2012 and adds approximately three more years to the current contract period, changing the expiry date from 10 January 2014 to 31 December 2016. The contract was amended in line with the commitment of Firman Ketaun and Teguh Sinar Abadi to raise their coal production.

?Thiess is pleased to continue the strong partnership forged with the Bayan Group. This is further evidence of our ability to build and maintain long-term relationships with clients in Indonesia,? Thiess Managing Director Bruce Munro said.

?Delivery of targets is a key factor of our success in Indonesia. The Thiess Indonesia team looks forward to participating in the expansion of the Melak Coal Mines as a key contributor to the Bayan Group?s coal operations in Indonesia,? Thiess Indonesia President Director Roy Olsen said. (romel/roffie)