The announcement of the new contracts follows the sale of the KPC mine to PT Bumi Resources by Rio Tinto and BP.

The new work includes life of mine contracts at the Senakin and Satui mines in South Kalimantan as well as KPC in East Kalimantan.

Thiess has also agreed to loan $58 million to Bumi Resources for the expansion of production at KPC from 18Mtpa to 23Mtpa.

Thiess managing director, Roger Trundle said that the company had provided services to the KPC mine since its initial development in 1989 and was delighted that Bumi Resources had placed such confidence in Thiess and its people.

"This new long-term contract at KPC will increase our current operations at the mine to 12mtpa (million tonnes per annum) which will generate an additional US$550 million (A$800m) of revenue for Thiess Indonesia over the next five years," Trundle said.

"Thiess Indonesia has also negotiated a two-year agreement with KPC to assist them with expansion of the overall mine.

"This agreement involves production planning as well as management of plant and equipment.

"As a demonstration of our commitment to KPC and our confidence in the mine, which is recognised internationally as a low cost producer of quality thermal coal, Thiess will loan US$40 million (A$58m) to the project," said Mr Trundle.

The $58 million will be a five-year senior loan, secured against the assets of KPC.

Meantime Thiess Indonesia will procure more than $115 million in new plant and equipment for the contract through leasing arrangements. MiningNews.net