Clough Expands Mining Business

Clough subsidiary company, PT Petrosea Tbk, has signed a four year mining contract with PT Mitra Internusa Persada in Kalimantan, Indonesia. Total contract value is of the order of US$100 million.

Petrosea will perform overburden stripping and coal mining activities at the Sanga Sanga concession commencing immediately. The mine is located near Samarinda in East Kalimantan, Indonesia, approximately 90 km north of Balikpapan.

David Singleton, CEO and Managing Director of Clough Limited, said: "Petrosea has and will continue to benefit from repeatable earnings generated by its new and existing mining contracts. Petrosea's profitability has improved over the last two years and it is now a significant contributor to the Clough Group.

"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. Petrosea's Tanjung Batu supply base in Balikpapan is well developed and equipped to support this new opportunity," Mr Singleton, said.

Initially the mining equipment utilised will be refurbished plant sourced from recently completed contracts in Kalimantan . Up to an additional US$10 million of new plant will be progressively introduced over a four year period as income is generated from the contract.

Since December 2004, Petrosea has added mining activity in excess of AU$350 million to its order book.

Clough holds an 82.2% interest in the Indonesian publically listed PT Petrosea Tbk. Petrosea's share price has increased from approximately Rp 2000 to Rp 5000 since the decision to retain the company was made by Clough in 2004.

Find out more about  Clough

Search for more Clough News

Posted 29/09/05

Back