Thiess secures contract extension at Melak coal mine in Indonesia

17 April 2016 (Last Updated April 17th, 2016 18:30)

Thiess, the mining arm of Cimic Group, has secured a contract extension by the Bayan Group members to continue operations at Melak coal mine in East Kalimantan, Indonesia.

Melak

Thiess, the mining arm of Cimic Group, has secured a contract extension by the Bayan Group members to continue operations at Melak coal mine in East Kalimantan, Indonesia.

The three-year contract extension awarded by the members PT Teguh Sinar Abadi and PT Firman Ketaun Perkasa has revenue of A$180m ($138m).

Thiess said that the contract will continue the company's mining development and operations at the site through to December 2019.

CIMIC executive chairman and CEO Marcelino Fernández Verdes said: "Thiess' global platform enables them to deliver safe, efficient and productive outcomes for clients across a variety of geographical locations."

Thiess managing director Michael Wright said: "The Melak contract extension is a testament to our performance at the mine since 2008.

"We are pleased to extend our partnership with the Bayan Group and continue our focus on delivering innovative and sustainable mining solutions for our client."

Thiess Indonesia secured a contract for eight years in October 2008 for the development and operation of the greenfield coal mine.

"We are pleased to extend our partnership with the Bayan Group and continue our focus on delivering innovative and sustainable mining solutions for our client."

Under the contract, the company undertook mine planning, overburden removal, coal mining, and coal loading and transportation from the mine site to the port.

Melak is divided into two different mine concessions known as Teguh Sinar Abadi and Firman Ketaun Perkasa.

The extension follows Thiess' recent contract award to provide underground mining services at BHP Billiton Nickel West's Leinster 1A orebody in Western Australia for 14 months.

The Leinster 1A development and sub-level open stoping contract is focused 900m underground.


Image: The Melak coal mine is located in East Kalimantan, Indonesia. Photo: courtesy of Thiess.