Petrosea gets $100m contract

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