CIMIC Group subsidiary, Thiess, says it has secured a A$172 million ($121 million) contract extension from Bayan Resources to expand operations at the Melak coal mine in East Kalimantan, Indonesia.

Under the 12-month extension, which takes the contract out to 2023, Thiess will increase coal production and overburden removal and continue to provide additional mining services, including drill and blast, and coal loading to the barge facility, it said.

CIMIC Group Mining and Minerals Executive and Thiess Managing Director, Douglas Thompson, said: “I’m pleased to be continuing our relationship with Bayan Resources and extending our operations at Melak where our team has delivered exceptional technical solutions for almost 10 years.”

In 2008, Thiess was awarded a contract to develop and operate the Melak greenfield coal mine. The mine is divided into the two different mine concessions, Teguh Sinar Abadi and Firman Ketaun Perkasa.