Sydney based contracting and project development group Leighton Holdings announced that it has secured AUD 700 million contract adjustment to increase production at the Ukhaa Khudag coal mine in southern Mongolia.

Energy Resources LLC has requested Leighton Asia to expand the production capacity at its UHG coal mine in the South Gobi region of Mongolia, Leighton said in a media release. The contract adjustment will ramp up production rates from current levels to 15 million tonnes per year by January 2013.

Leighton Asia was awarded the mining contract for the UHG Mine in February 2009. Coal production began in April 2009 with total production of 1.8 million tonnes at the end of 2009.

Mr Hamish Tyrwhitt MD of Leighton Asia said that “The request to expand capacity was a testament to Leighton’s strong performance since 2009. It further demonstrates our ability to deliver world class mining solutions to our clients, both through the quality of our people and the safety and reliability of our operations.”

Mr Tyrwhitt said that “Our strong working relationship with Energy Resources and the local communities in the South Gobi region will ensure the continued success of this project.”

Earlier this month, Leighton Holdings announced it has won AUD 629 million worth of projects in India.

(Sourced from www.businessreviewaustralia.com)