Leighton Asia secures 5 year Indonesia mining contract
Australia's largest project development and contracting group Leighton Holdings (ASX:LEI) said today that its wholly owned subsidiary Leighton Asia has secured a A$172 million contract for the provision of mining services at the Martabe Gold Mine in North Sumatra Province, Indonesia.
Martabe Gold Mine is recognized as a world class gold/silver asset, containing a resource base of 6.5Moz gold and 66Moz silver. Located in North Sumatra Province, Indonesia, it is part of G-Resources Group Ltd's operations.
PT Leighton Contractors Indonesia, a division of Leighton Asia, has been awarded a contract to undertake the mining activities, including mine haul road construction, topsoil removal, drill and blast, mining of waste and the construction of mine infrastructure, Leighton Holdings said in a statement.
Production will ramp up to 10 Mtpa once at full production. PT Leighton Indonesia has commenced mobilization, with the first equipment due on site in early August 2010.
Leighton Asia managing director Hamish Tyrwhitt said, "We are excited by the opportunity to work closely with G-Resources. Our project team has a solid reputation for delivering greenfield projects in Asia, drawing upon Leighton's core skills and significant abilities."
According to the company, the awarding of the mining contract highlights Leighton Asia's ability to deliver robust mining solutions to clients across Asia and reaffirms the company's competitive position and solid abilities in Indonesia.
"This contract will enable Leighton Asia to diversify its mining operations in Indonesia both by commodity and geography," Mr. Tyrwhitt said.
"Accordingly we will be optimising local employment with intensive training programmes, highlighting our commitment to the local community and other important stakeholders," he said.
The contract takes Leighton Asia's work in hand to record levels of over A$7 billion, the company said in a statement.
G-Resources Vice Chairman Owen Hegarty said "Leighton won this contract in a competitive tender and G-Resources is very pleased to award this milestone contract to a company of the calibre of Leighton. Martabe is a world class project and Leighton will be part of our team as we realise the tremendous value at Martabe."