Update 1: Leighton bags $680m coal mining contracts

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Australian construction firm and mining service provider Leighton Holdings Ltd. said on Wednesday it has won US$680 million coal mining service contracts in Indonesia.

 

One of the contracts worth $610 million will be for the provision of mining services at PT Wahana Baratama Mining's coal mine in South Kalimantan, Leighton said in a statement.

 

Mobilization would commence immediately, the company said, adding first production at the mine would start after Wahana received a final approval from the government, which is expected shortly. The project is expected to be completed by late 2012.

 

The company also won a $70 million contract with PT Multi Harapan Utama to carry out mining works at the latter's mine near Samarinda, East Kalimantan. The two-year contract involves land clearing, drill and blast, load and haul of overburden, coal mining and haulage of coal to port, the company said.

 

The company said the new contracts has boosted its work in hand in Indonesia to $800 million. Leighton is currently working on six other mines in Indonesia and will be mining over nine tonnes of coal per annum.

 

PT Wahana Baratama Mining has a third generation coal contract of work signed on Nov. 20, 1997 to operate a 7,811 Ha concession in South Kalimantan. Based on the results of exploration carried out since 1997, an area measuring 78 km2 (from Block I to Block III) contains coal deposits feasible for mining.

 

PT Multi Harapan Utama, established as a joint venture in 1986,  was granted a coal concession in East Kalimantan by the government in the same year.(denny)