Thiess (Indonesia) has been awarded a 5 year, AU$1 billion contract for the development and operation of the Teguh Sinar Abadi (TSA) and Firman Ketaun Perkasa (FKP) Coal Mines. TSA and FKP are a subsidiaries of Bayan Resources in Indonesia.

The Mines are part of the Bayan Group's expansion plans and are located near Melak in East Kalimantan. The new contract includes mine planning, overburden removal, coal mining, plus loading and transportation of coal from the mine site to the river port.

Work will commence immediately with client supplied equipment already onsite. The initial production target is 4 million tonnes of coal and 40 million BCM of overburden per annum, to be achieved by the third year.

Thiess Managing Director David Saxelby said, "The TSA/FKP Mines are a key project for Thiess as it is the first with the expanding Bayan Group and is also an important step in our Indonesian diversification strategy.

"It will provide us an opportunity to reinforce within the market the depth of expertise within our mining and construction business in Indonesia."

Thiess has secured three new resources contracts in Indonesia over the past 6 months taking work in hand for the Indonesian operations to in excess of AU$2 billion and reconfirms its presence as one of the Indonesia's largest resources contractors.

Thiess Indonesia President Director Roy Olsen said, "Throughout the tender process we've been able to consistently demonstrate our ability to add value to our client's project. We've done this consistently not in our mining here in Indonesia but right across our mining business."

"Thiess gives them the confidence that they are working with a contractor who can deliver reliable production and meet the guaranteed sales going forward. Our outstanding safety performance adds to our standing with Bayan."