Thiess has secured a $172 million contract extension from Bayan Resources to expand the Melak coal operations in East Kalimantan, Indonesia.
The contract was extended for a further 12 months until 2023, building on its latest contract extension (valued at $530 million) until March 2022.
The CIMIC Group contractor will increase Melak’s coal production and overburden removal, while providing additional mining services including drill and blast and coal loading to the barge facility. The mine is targeting 3–3.4 million tonnes of coal production in 2019.
“It’s great to see our team in Indonesia continue to drive operational solutions and value for our clients to meet their production and expansion needs,” CIMIC Group chief executive Michael Wright said.
Thiess began work in developing and operating both Melak’s mining concessions Teguh Sinar Abadi and Firman Ketaun Perkasa when it received an eight-year contract from Bayan Resources in October 2008.
The Melak operations had an initial production target of two million tonnes during its first year, which grew to four million tonnes in the third year.
“I’m pleased to be continuing our relationship with Bayan Resources and extending our operations at Melak where our team has delivered exceptional technical solutions for almost 10 years,” Thiess managing director Douglas Thompson concluded.