Thiess extends Indo thermal coal contract

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Harum Energy has renewed Thiess’ mining contract at the Mahakam Sumber Jaya thermal coal mine.
$300m renewal repeats earlier deals

Major mining contractor Thiess has secured a A$300 million, three-year extension of its surface mining contract at Harum Energy’s Mahakam Sumber Jaya (MSJ) thermal coal mine in East Kalimantan, Indonesia.

Its announcement, give or take a word or two, is a repeat of its past two MSJ contract dispatches quoting the same price for three-year renewals.

The new extension starts April 1 next year. It adds to Thiess’ energy coal order book, with Fitch Ratings saying recently thermal coal accounted for about 40% of Thiess’ work in hand. Fitch said the CIMIC and Elliott Management owned contractor, the world’s biggest mining services company by revenue, would be exposed to higher funding costs due to its “energy transition risk and a smaller funding base as financial institutions withdraw due to environmental, social and corporate governance issues”.

“The company has said it will diversify into new minerals, but the transition will take time,” Fitch said.

Thiess has been working at the Harum Energy mine since it was first developed in 2008.

 

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