CIMIC Group’s mining contractor Thiess has secured a contract extension to continue operations for another three years at the Melak Coal Project in East Kalimantan, Indonesia.

The contract extension was awarded by Bayan Group members PT Teguh Sinar Abadi and PT Firman Ketaun Perkasa. It will continue Thiess’ mining development and operations at the site through to December 2019.

CIMIC executive chairman and CEO Marcelino Fernández Verdes said, “Thiess’ global platform enables it to deliver safe, efficient and productive outcomes for clients across a variety of geographical locations.”

Thiess managing director Michael Wright said, “The Melak contract extension is a testament to our performance at the mine since 2008. We are pleased to extend our partnership with the Bayan Group and continue our focus on delivering innovative and sustainable mining solutions for our client.”

Thiess Indonesia secured a contract for eight years in October 2008 for the development and operation of the greenfield coal mine. Under the contract, the company undertook mine planning, overburden removal, coal mining, and coal loading and transportation from the mine site to the port.

Melak is divided into two different mine concessions - Teguh Sinar Abadi and Firman Ketaun Perkasa.

The contract extension follows Thiess’ recent contract award to provide underground mining services at BHP Billiton Nickel West’s Leinster 1A ore body in Western Australia for 14 months.

The Leinster 1A development and sub-level open stoping contract is focused 900 metres underground, and builds on the same innovative contracting model provided for the adjacent Rocky’s Reward open cut mine in Leinster, Western Australia.

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