Project development and contracting company Leighton Holdings Ltd
(ASX:LEI) has secured a $940 million contract adjustment to increase production at a coal mine in southern Mongolia.
Energy Resources LLC has asked Leighton Asia to expand the production capacity at its UHG coal mine.
The contract adjustment will ramp up production rates from current levels to 10 million tonnes per year by June 2011.
Leighton Asia was originally awarded the mining contract for the UHG Mine in February 2009 and coal production commenced in April 2009 with total coal production of 1.8 million tonnes in the year to December 31, 2009.
Managing director of Leighton Asia Hamish Tyrwhitt says the request to expand capacity is a result of the company’s success in developing an efficient, world class operation at the UHG Mine.
Meanwhile Leighton Holdings announced yesterday that its joint venture with Abigroup has been awarded a $240 million contract extension to deliver upgrade works on the Gateway Motorway.
Leighton Holdings net profit after tax for the 12 months to June 30, 2009 came to $440 million.
