Thiess beats two Indian competitors for the A$5.5 billion, 22-year mine development & coal mining contract for NTPC Ltd in India
Leighton Holdings subsidiary, Thiess, has secured a milestone A$5.5 billion, 22-year mine development and coal mining contract for blue chip client NTPC Ltd in India. This contract is one of the largest ever awarded by NTPC.
Thiess will develop and operate the Pakri Barwadih coal mine, a Government of India enterprise and the nation’s largest electricity generator. This will be the first of six mines NTPC Limited intends to develop to provide low cost coal for its power stations, replacing expensive imported coal.
The field is planned to produce up to 15 million tons per annum over the first three years of mining and more than 300 million tons of coal will be mined over the contract duration.
Beating out two Indian competitors, Thiess will execute the project through its 90 percent owned Indian joint venture company Thiess Minecs. The contract involves the construction of site infrastructure and coal processing plants during the first two years, followed by overburden removal, coal mining and operation of processing and rail loading facilities over the life of mine.
Mining Chief Executive Bruce Munro said winning the contract is a platform on which to build a contract mining business in India and has been a long term goal for Thiess. “India has the fourth-largest coal reserves in the world and is the third largest producer. We believe this project will lead to more opportunities for Thiess in India, particularly given the strong economic growth currently occurring,” Munro said.
Thiess intends to recruit locally, providing a significant economic boost to the regional economy.