Leighton Asia has received a Letter of Award for a seven-year contract worth approximately A$420 million to provide mining services to PT Marunda Grahamineral in Central Kalimantan.

Located in the Laung Tuhup of Central Kalimantan's Murung Raya Regency on the island of Borneo, this coal mining project involves the extraction of over 2 million tonnes of high-quality thermal and coking coal per annum by traditional drill and blast and truck and shovel methods.

Securing the contract is a very significant initiative as it represents a first strategic move into coking coal mining in the emerging Central Kalimantan region for Leighton Asia, which operates in Indonesia through PT Leighton Contractors Indonesia.

The contract was won on the back of PT Leighton Contractors Indonesia's solid contract mining and remote infrastructure competency and experience, and proactively positions the Company to provide support in further developing the country's vast minerals and resources potential. PT Leighton Contractors Indonesia is currently involved with two coal and two gold mining projects in Indonesia.

The Letter of Award requires PT Leighton Contractors Indonesia and PT Marunda Grahamineral to finalise contract terms and conditions. Whilst this process is ongoing, PT Leighton Contractors Indonesia is mobilising to site under an Agreement for Advance Works.

"Winning this contract is a testament to our solid track record and the experience accumulated over the past decade of working in Indonesia. We are very proud to have won such a significant award, which is integral to our strategy of securing major, high quality coking coal mining projects in Central Kalimantan.

This contract award from PT Marunda Grahamineral reaffirms our competitive position in Indonesia as a leading provider of total mining solutions for our clients," said Justin Colling, President Director of PT Leighton Contractors Indonesia.

Under the contract, PT Leighton Contractors Indonesia will be responsible for providing project management, mine planning, surveying, supervision, site security, materials, heavy equipment, equipment maintenance, labour, transportation, medical services, consumables and site infrastructure.

"We've successfully demonstrated our ability to add value to our clients' projects over many years, both through the quality of our people and the safety and reliability of our operations. With a solid track record in the contract mining sector, we thrive on providing world-class solutions to our clients," said Ian Edwards, Managing Director of Leighton Asia, India and Offshore.