Petrosea gets $100m contract

Publicly listed firm PT Petrosea, a local unit of Australian listed engineering and construction company Clough Limited, has secured a US$100 million contract to mine coal in Kalimantan.

In its report to the Australian Stock Exchange on Tuesday, Clough said the four-year contract was awarded by Indonesian coal company PT Mitra Internusa Persada to perform mining activities at the Sanga Sanga concession near Samarinda, East Kalimantan.

"Sanga Sanga was selected from a number of mining opportunities due to the coal quality, contract terms available and its proximity to existing Petrosea mining projects," said Clough chief executive officer David Singleton.

Petrosea's Tanjung Batu supply base in Balikpapan, East Kalimantan was well developed and equipped to support the activities, added Singleton.

Under the contract, up to $10 million will be progressively invested in new plant over a four-year period.

As of last year, Petrosea has added mining activities in excess of A$350 million to its order book.

Clough holds an 82.2 percent interest in Petrosea, while the remaining is held by public investors. Petrosea has been operating in Indonesia since 1972.

The country's largest coal producer PT Kaltim Prima Coal is also mining coal in the province. -- JP