Thiess Secures Major BHP Mining Contracts in Indonesia

Issue Date:  19 May 2000
Issued By:  Thiess Contractors Pty Limited

PT Thiess Contractors Indonesia, a subsidiary of Thiess Contractors Pty. Ltd. has entered into a long term contract with PT Arutmin for the whole of mine operations at the Senakin and Satui coal mines in South Kalimantan, Indonesia. PT. Arutmin is 80% owned and managed by BHP, with the balance held by the Indonesian Bakrie Group. This contract is valued at approximately AUD$800M (US$480M) over a five year period.

Under the terms of the contract, Thiess will be responsible for the complete operation of each mine, from mine planning through to product loadout, which will total approximately 9.5 million tonnes per annum.

Thiess’ Managing Director, Mr Martin Albrecht said that this was a significant milestone for the company and its long standing relationship with BHP.

“Last year we celebrated 10 years of successful operations with BHP in Indonesia”.

“Our long term commitment to the region is evidenced through the company’s sustained growth and record level of capital investment in Indonesia. This has been achieved despite recent events and the economic downturn. PT Thiess’ work in hand now exceeds AUD$1.1Billion.

Pt Arutmin President Director, Mr Ken Farrell said that he was confident in Thiess’ ability to support their operations and meet critical product quality and production requirements, as well as sustain continual improvement in the intensely competitive global resources market.

“Thiess has a strong track record of servicing our needs in Indonesia and we see this contract continuing the long standing relationship”.

Servicing clients in the resource sector is a key focus of Thiess’ business in Indonesia, with a major portion of projects in this market. The company has provided services to PT Arutmin at both the Senakin and Satui mines since first establishing in the country in 1989. At Senakin, Thiess was responsible for the construction of two coal preparation plants and associated port facilities, as well as ongoing mine development operations. Work at Satui has included haul road construction and overburden removal.

PT Thiess’ President Director in Indonesia, Mr Bruce Munro said that this contract has Thiess providing fully integrated services in accordance with PT. Arutmin’s Coal Contract of Work with the Indonesian Government.

Thiess’ strong local presence and knowledge will assist with the effective management of the labour force, which totals some 1650 people.

“Employing, developing and training local staff at all levels of the organisation is one of the key issues we believe has given us a competitive advantage in Indonesia” said Mr. Munro. Our long term commitment to building and sustaining our business here is based on a proactive approach to local community engagement and employing and developing local expertise and skills” he said.

The initiative to establish the Thiess Training Centre in Balikpapan, Indonesia in 1992 has meant that the company can provide specific and tailored training programmes to suit the needs of its people and its business. These programmes have been accredited by the Queensland State Training Council, with the first of the graduates recently awarded with accreditation certificates to Australian standards.

Queensland Premier Peter Beattie recently opened Thiess’ new head office in Jakarta, which accommodates the company’s strong growth over the past ten years and caters for future needs.

Ends.

Released by:
Thiess Contractors Pty Limited ACN: 010 221 486

For further information:
Mr Martin Albrecht
Thiess Contractors Pty Limited
Managing Director
(07) 3002-9092

Ms Barbara Ferry-Smith
Thiess Contractors Pty Limited
Manager Corporate Relations
(07) 3002-9680
0419 647-841