SYDNEY (Yosefardi) – Leighton Holdings confirms that there is a dispute between its subsidiary Thiess and the owners of Senakin and Satui mines in South Kalimantan, PT Arutmin Indonesia.
Thiess decided to suspend operations of the Senakin and Satui mines on April 26 as it pursued Arutmin for the payment of net project receivables or underclaims, to which Leighton has a contractual entitlement.
“The group remains confident that work at Senakin and Satui mines will return to production following a satisfactory resolution of matters between the parties,” Leighton informed ASX this morning.
The Senakin and Satui mines contributed approximately 1.5% of Leighton’s total revenue last year.
Thiess is also contractor for Kaltim Prima Coal (KPC), but mining work at the company continues uninterrupted, Leighton said.
Arutmin and KPC are controlled by Bumi Resources and Tata Group.