Leighton wins Mongolia mining contract

By a staff reporter

Construction group Leighton Holdings Ltd has secured a $273 million, six-year contract to develop and operate Mongolia Energy Corporation's (MEC) Khushuut coal mine in western Mongolia.

MEC awarded Leighton Asia – a wholly-owned subsidiary of Leighton Holdings – the project contract, which is expected to eventually result in up to five to six million tonnes of coking coal each year, as production is ramped up.

"This award represents an important milestone to our business in Mongolia bringing our total number of mines to three," Leighton Asia managing director Hamish Tyrwhitt said.

Mr Tyrwhitt said that the company's work in hand had now reached a record level of $6 billion.

Leighton Asia will be responsible for all mining activities including the loading and hauling of waste and coal, drilling and blasting, mine planning, technical support, site camp management and catering services.

This will be the second contract MEC has awarded to Leighton, following November 2009 when the company was awarded the contract to provide an initial three million tonnes per annum mine plan study.

"Our selection of Leighton as mining contractor will assist in the efficient and professional development of our initial project at Khushuut and demonstrates MEC's commitment to building professional and local relationships for further projects," MEC chief executive James Schaeffer Jr. said.