CIMIC Group’s mining contractor, Thiess, has secured a contract extension to continue operations for another three years at the Melak coal project in East Kalimantan, Indonesia.

The contract extension was awarded by Bayan Group members PT Teguh Sinar Abadi and PT Firman Ketaun Perkasa. It will continue Thiess’ mining development and operations at the site through to December 2019.

Thiess Indonesia secured a contract for eight years in October 2008 for the development and operation of the greenfield coal mine. Under the contract, the company undertook mine planning, overburden removal, coal mining, and coal loading and transportation from the mine site to the port.

Melak is divided into two different mine concessions—Teguh Sinar Abadi and Firman Ketaun Perkasa.

The contract extension follows Thiess’ recent contract award to provide underground mining services at BHP Billiton Nickel West’s Leinster 1A orebody in Western Australia for 14 months.

The Leinster 1A development and sublevel open stoping contract is focused on operations 900 m underground.