Tag Archives: Kaltim Prima Coal

Thiess extends KPC stay and bolts on hire services for Sangatta mine

Coal technology, Mining equipment, Mining services, , , , , , ,

Thiess has secured an agreement with Kaltim Prima Coal (KPC) to extend its current mining services contract and to provide fleet hire services at Sangatta mine, East Kalimantan, Indonesia.

With revenues of A$210 million ($141 million) and commencing in January 2023, Thiess will expand its services from land preparation, load and haul, asset management and rehabilitation, to include equipment hire and maintenance.

Thiess Executive Chair & CEO, Michael Wright, said: “The KPC mine in Sangatta has been an important part of the Thiess business for more than 30 years. We are proud to continue contributing to our client’s ongoing success, while extending our strong record of safe operations.

“We also welcome the opportunity to continue to work with the Sangatta community where we have been involved for some 30 years.”

Thiess President Director, Indonesia, Jeffrey Kounang, said: “Our team in Sangatta played a significant role in securing this extension, managing operations safely and meeting our client’s expectations, despite the often challenging weather impacts. And they did this while achieving a fantastic record of 10 million work hours injury free!

“This extension gives us the opportunity to continue delivering sustainable results for the client and the community, which we are so passionate about.”

Thiess has been working with KPC since October 2003 and currently undertakes a range of contract mining services for four of KPC’s pits including mine planning, stripping, blasting, overburden removal, mining and stockpiling.

CIMIC eyes more coal work as Q1 financials hold up

Coal technology, Mine operation news, Mineral processing, Mining equipment, Mining finance, Mining services, , , , , , , , , , ,

Australia-based engineering-led group, CIMIC, posted “robust” operating profit margins in its March quarter results, remarking that the mining market is proving resilient throughout the turbulence caused by the fallout of the COVID-19 pandemic.

Revenue came in at A$3.3 billion ($2.1 billion) for the three-month period, slightly down on last year’s A$3.4 billion, while net profit after tax was A$166 million, compared with A$181.1 million in the March quarter of 2019.

Its operating profit margin was 8.4% for the period.

Throughout the quarter, the company said it had witnessed stable investment in capital expenditure to sustain mining operations. Its UGL subsidiary secured contracts to provide maintenance, shutdown and project services for clients in the mining sector, and its Thiess and Sedgman subsidiaries secured framework agreements with Rio Tinto Iron Ore, in Western Australia, and variations to operations contracts in New South Wales, respectively.

The future prospects for the company look good with, as at March 31, around A$90 billion of tenders relevant to CIMIC expected to be bid and/or awarded for the remainder of 2020, and around A$400 billion of projects coming to the market in 2021 and beyond, it said.

Some major projects the company is currently bidding on include the Lake Vermont mining extension contract in Queensland, Australia. CIMIC’s Thiess is currently working on this Jellinbah Group-owned coal asset through a schedule of rates contract that sees it carry out coal mining, clearing and grubbing, topsoil removal, drill and blast, overburden removal and rehabilitation of final landforms. It also provides all mobile plant and equipment and operates and maintains the client’s coal handling and preparation plant at the site, according to Thiess.

Another contract the company is eying up for more work is the Kaltim Prima Coal (KPC) mining extension in Indonesia. Again, Thiess has a schedule of rates contract in place at the 11 Mt/y Sangatta coal operation and the company hopes it can continue its relationship with the mine with a 2022 contract extension.