Project development and contracting company Leighton Holdings Ltd
(ASX:LEI) has secured a $273 million contract to develop and operate a coal mine in western Mongolia for Mongolia Energy.
The contract, awarded to Leighton Asia, is for six years and is the second contract to be awarded to the company by Mongolia Energy.
Leighton says the contract is based on a mine plan which ramps up to an initial 3 million tonnes of coking coal a year and includes 48.5 million cubic metres of material movement and anticipated ramp up to 5 to 6 million tonnes or more of coking coal a year.
Leighton Asia will be responsible for all mining activities including load and haul of coal, mine planning, technical support and site camp management.
Leighton Asia managing director, Hamish Tyrwhitt says this award represents an important milestone for the company’s business in Mongolia bringing the total number of mines to three and bringing the total of work in hand for the company, to a record level of $6 billion.
Leighton Holdings profit for the 2009 financial year came to just over $440 million.
