Clough wins RI coal contract

Clough wins RI coal contract

SYDNEY (Dow Jones): Clough Ltd., an Australian engineering and construction concern, said Wednesday it has won a A$215.5 million coal mining contract in Indonesia from Indonesian miner PT Gunungbayan Pratamacoal, or GBP.

The company said in a statement that the new contract will take the group's total order book to A$1.2 billion, ahead of budget and "well up" on the A$1 billion in the order book at the start of the fiscal year ended June 30.

"It will significantly strengthen the Clough group's operations in Indonesia by delivering base operating cash flows and profitability for our subsidiary PT Petrosea Tbk which will underpin its growth into the new millennium," said Clough Managing Director Brian Hewitt.

Clough said the contract is for the period of 50 months, and the work will be done in the East Kalimantan province.

The high-quality, low-sulfur coal mined at the site is mainly sold by GBP for export into the Japanese market, Clough said.