PT Thiess Contractors Indonesia is pleased to announce the signing of a US$500 Million contract extension with PT Bayan Resources Tbk which extends the existing contract by three years for the further development and operation of the Teguh Sinar Abadi and Firman Ketaun Perkasa Coal Mines, located near Melak in East Kalimantan.

The extension sets a production target of 5 MT of coal and 70 MBCM of overburden per annum. Commencement of the agreement will start on 01 January 2012 and adds approximately three more years to the current contract period.

"Thiess is pleased to continue the strong partnership forged with the Bayan Group. This is further evidence of our ability to build and maintain long-term relationships with clients in Indonesia," said Thiess Managing Director, Bruce Munro.

"Delivery of targets is a key factor of our success in Indonesia. The Thiess Indonesia Team looks forward to participating in the expansion of the Melak Coal Mines as a key contributor to the Bayan Group's coal operations in Indonesia," said Thiess Indonesia President Director, Roy Olsen said.