Thiess secures major mining contracts in Indonesia

PT Thiess Contractors Indonesia, a subsidiary Thiess Contractors Pty. Ltd. has entered into a long-term contract with PT Arutmin for the operation of the Senakin and Satui coal mines in South Kalimantan, Indonesia. PT. Arutmin is 80% owned and managed by BHP, with the balance held by the Indonesian Bakrie Group. This contract, is valued at approximately AUD$800M (US$480M) over a five year period.

Under the terms of the contract, Thiess will be responsible for the complete operation of each mine, from mine planning through to product loadout, which will total approximately 9.5 million tonnes per annum.

Thiess' Managing Director, Mr. Martin Albrecht said that this was a significant milestone for the company, which celebrated 10 years of successful operations in Indonesia last year.

Our long term commitment to the region is evidenced through the company's continued growth and record level of capital investment. This has been achieved despite recent events such as the economic downturn. PT Thiess' work in hand now stands at AUS$1.1 Billion.

PT Arutmin President Director, Mr. Ken Farrell said that he was confident in Thiess' ability to support their operations and meet critical product quality and production requirements, as well as seek long-term improvements.

"Thiess has a strong track record of servicing our needs here in Indonesia and we see this contract as integral to improving the efficiency of our operations".

Servicing clients in the resource sector is a key focus of Thiess' business in Indonesia, with some 90% of current contracts in mining and related projects such as resource infrastructure development. The company has provided services for PT Arutmin at both the Senakin and Satui mines since first establishing in the country in 1989. At Senakin, Thiess was responsible for the construction of two wash plants and associated port facilities, as well as ongoing mine development operations. Work at Satui has included haul road construction and overburden removal.

PT Thiess' Manager in Indonesia, Mr. Bruce Munro said that this contract has Thiess undertaking mining operations in accordance with PT. Arutmin's Coal Contract of Work with the Indonesia Government.

"Further, this contract gives us a unique opportunity to provide a fully integrated service which delivers continuous improvements in overall project performance" said Mr. Munro.

Thiess' strong local presence and knowledge will assist with the effective management of the labour force, which totals some 1650 people.

"Employing, developing and training local staff at all levels of the organization is one of the key issues we believe has given us a competitive advantage in Indonesia" said Mr. Munro. Our commitment to building out business here is based on being a part of the culture, and employing and developing local expertise and skills," he said.

The initiative to establish the Thiess Training Centre in Balikpapan, Indonesia in 1992 has meant that the company can provide specific and tailored training programmes to suit the needs of its people and its business. These programmes have been accredited by the Queensland State Training Council, with the first of the graduates recently awarded with accreditation certificates to Australian standards.

Queensland Premier Peter Beettie recently opened Thiess' new head office in Jakarta, which accommodates the company's strong growth over the past ten years and caters for future needs. Ends. (*)

Released by: Thiess Contractor Pty Limited ACN: 010 221 486

For further information:

Mr. Martin Albrecht, Thiess Contractors Pty Limited, Managing Director, (07) 3002-9092

Mr. Bruce Munro, PT Thiess Contractors Indonesia-Manager Indonesia Operations, 0011 62 21 75999 999

Ms Barbara Ferry-Smith, Thiess Contractors Pty Limited-Manager Corporate Relations, (07) 3002-9680, 0419 647-841