Following the sale of the Kaltim Prima Coal (KPC) mine in Indonesia to PT Bumi Resources Tbk by Rio Tinto and BP, PT Thiess Contractors Indonesia has secured new mining contracts worth US$1.2 billion.

The new work includes life of mine contracts at the Senakin and Satui mines in South Kalimantan as well as KPC in East Kalimantan.

Thiess Managing Director, Roger Trundle said that Thiess had provided services to the KPC mine since its initial development in 1989 and was delighted that Bumi Resources had placed such confidence in Thiess and its people. "This new long-term contract at KPC will increase our current operations at the mine to 12mtpa (millions of tonnes per annum) which will generate an additional US$550 million of revenue for Thiess Indonesia over the next five years," said Mr Trundle.

"Thiess Indonesia has also negotiated a two-year agreement with KPC to assist them with expansion of the overall mine from approximately 18mtpa to over 23mtpa. This agreement involves production planning as well as management of plant and equipment," he said.

"As a demonstration of our commitment to KPC and our confidence in the mine, which is recognised internationally as a low cost producer of quality thermal coal, Thiess will loan US$40 million to the project," said Mr Trundle.

"This will be a five-year senior loan, secured against the assets of KPC. The loan forms part of a six and a half year US$405 million amortising debt package arranged by international financiers. In addition, Thiess Indonesia will procure more than US$80 million in new plant and equipment for the contract through leasing arrangements."

In addition, Thiess Indonesia has extended its Alliance Contract with PT Arutmin (owned by Bumi Resources) for the operation and expansion of the Senakin and Satui mines to a life of mine contract. This will add US$650 million to Thiess Indonesia's work in hand over the next five years.

"We will work closely with Bumi Resources to strengthen and expand their existing operations. Our considerable experience in the mining sector coupled with our strong Indonesian presence and local knowledge provides us with the capability of delivering an efficient and professional service at the KPC, Senakin and Satui mines," said Mr Trundle.

President Director of Thiess Indonesia, Bruce Munro, said, "Thiess Indonesia's strategy of building strong client relationships and focusing on service delivery has paid dividends in securing this additional work. These new long term contracts again demonstrate our capability in providing competitive services to our clients."