Leighton Holdings Ltd announced its subsidiary, Leighton Asia, has secured a $273 million contract to develop and operate a coal mine in western Mongolia for Mongolia Energy Corporation (MEC).

Leighton said the contract is based on a mine plan which ramps up to an initial 3 million tonnes of coking coal a year and includes 48.5 million cubic metres of material movement and anticipated ramp up to 5 to 6 million tonnes or more of coking coal a year.

Under the six-year contract, Leighton Asia is responsible for all mining activities, including load and haul of waste, load and haul of coal, drill and blast, mine planning, technical support, site camp management and catering services at MEC's Khushuut coal mine.

The contract is the second contract to be awarded to the company by MEC. In November 2009, Leighton Asia won the contract to provide an initial 3 million tonnes per annum mine plan study.

Leighton Asia managing director Hamish Tyrwhitt said the new contract represents a milestone for the company's business in Mongolia bringing the total number of mines to three.

Tyrwhitt said work in hand at Leighton Asia has now reached a record level of $6 billion.

Khusuut coal mine is within 600 hectares of around 330,000 hectares of MEC's concession areas in western Mongolia.

Leighton Holdings profit booked a profit of over $440 million for the 2009 financial year.

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