Churchill Mining signs heads of agreement with Leighton

Churchill Mining signs heads of agreement with Leighton

Churchill Mining Plc, the Indonesia-focused resources company with a JORC compliant resource of 1.4 billion tonnes of thermal coal at its East Kutai Coal Project, is pleased to announce that it has signed an Alliance Heads of Agreement with  PT Leighton Contractors Indonesia.

Leighton is a part of Leighton International Limited, which in turn is a part of the Leighton Group – Australia’s largest contracting and project development group which includes not only Leighton International but also other large companies including Thiess, John Holland, Leighton Contractors, Leighton Asia, Leighton Properties and Henry Walker.

The H.O.A, which was signed between Churchill’s Indonesian operating subsidiary, PT Indonesia Coal Development, and PT Leighton Contractors Indonesia, details the  framework by which the two groups will work together to facilitate Churchill’s plans to bring the EKCP into production.

Under the H.O.A, Leighton will advise Churchill as it continues to develop engineering, procurement and construction solutions for both the Fast Track Operational Mining Study (“Stage-1”) and the Long Term Infrastructure and Mining Study (“Stage-2”) for the EKCP.

As part of the agreement Leighton will prepare and submit contractual, technical and financial proposals for Churchill to consider. In return, Leighton will be granted a preferred contracting party status for the provision of the Stage-1 and Stage-2 works and for the mining operation stage subject to the final proposals submitted by Leighton being deemed competitive by both Churchill’s own team and Churchill’s technical consulting group, Trans Tek Engineering.

Churchill has reserved the right to seek other proposals to determine competitive market rates and both groups will work towards a “Best for Project” outcome with regards to any future development. In the event that a contract is not entered into between Leighton and Churchill, Churchill will reimburse Leighton’s costs to an agreed level.

The Leighton group is vastly experienced in the global coal mining industry and is now the world’s largest contract miner. The group’s subsidiary companies have a very strong presence and wide operating experience in Indonesia. Leighton is currently contracted to operate the Wahana, MSJ and MHU coal mines in Kalimantan.

Churchill’s Managing Director, Paul Mazak, commented;
“Joining forces with Leighton, a highly reputable player with vast experience in the Indonesian coal sector, is a major step forward for Churchill. It ensures that we bring tremendous level of technical expertise to the EKCP development. Leighton’s  contribution will be instrumental in the months ahead as we are moving EKCP into  production.”

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