Thiess wins new KPC contract

Thiess wins new KPC contract

The Jakarta Post, Jakarta

Engineering and construction firm PT Thiess Contractors
Indonesia announced on Monday it has secured new mining contracts
worth US$1.2 billion, including a contract with coal mining giant
PT Kaltim Prima Coal (KPC).

The new contract comes after Anglo-Australia mining giant Rio
Tinto and Anglo-American energy firm BP Plc completed the sale of
KPC to local mining company PT Bumi Resources last week.

"This new long-term contract with KPC will increase our
current operation at the mine to 12 million tons per annum, which
will generate an additional $550 million in revenue for Thiess
Indonesia over the next five years," Thiess managing director
Roger Trundle said in a press release to The Jakarta Post.

Thiess Indonesia, a subsidiary of Leighton Holdings Ltd, has
been providing services to KPC since 1989.

Trundle said Thiess had also negotiated a two-year agreement
with KPC to assist them in increasing production from the current
18 million tons per annum to 23 million tons per annum. The
agreement involves production planning, as well as management of
plants and equipment, he said.

Leighton's financial arm, Leighton Financial International,
will provide a $40 million loan to KPC. This amount is part of
the $404 million loan from international lenders secured by Bumi
for the acquisition of KPC.

Apart from the contract with KPC, Thiess also extended its
contract with coal mining company PT Arutmin -- also owned by
Bumi -- for the operation of its Senakin and Satui mines. The
contract will add $650 million to Thiess Indonesia's work-in-hand
over the next five years, Trundle said.