The project, owned by Marunda Grahamineral, is located in the Laung Tuhup region of Central Kalimantan Murung Raya Regency in Borneo and involves the extraction of more than two million tonnes of high-quality thermal and coking coal per annum via drill, blast and truck and shovel methods.

Securing the contract represented a first strategic move into coking coal within the region, the company said.

Leighton Asia operates in Indonesia through PT Leighton Contractors Indonesia, which already has two coal and two gold mining projects in Indonesia.

While contract terms and conditions are being finalised, Leighton Contractors has mobilised to site under an agreement for advanced works.

Among its responsibilities, Leighton Contractors will provide project management, mine planning, surveying, equipment maintenance and labour transportation.

Leighton Asia managing director Ian Edwards said the contract demonstrated the company’s commitment to providing value to its client’s projects.

Leighton Contractors Indonesia president Justin Colling welcomed the contract.

“We are very proud to have won such a significant award, which is integral to our strategy of securing major, high quality coking coal mining projects in Central Kalimantan,” Colling said.

“This contract award from PT Marunda Grahamineral reaffirms our competitive position in Indonesia as a leading provider of total mining solutions for our clients.”