A subsidiary of Leighton Holdings Ltd has signed a USD940-million contract adjustment to increase production at a coal mine in southern Mongolia. Leighton Asia signed the contract adjustment, which will pave the way for increased production at the Ukhaa Khudag coal mine, according to a statement from the parent company.

The mine produced 1.8 million tons of coal last year, after it commenced production in April. Leighton”s contract will allow production from the mine to be ramped up to 10 million tons a year by June 2011. The mine is controlled by Energy Resources LLC and Leighton Asia was awarded the original mining contract in February last year.

Leighton Asia managing director Hamish Tyrwhitt said the request to expand its capacity was the result of his company”s success in developing a world class operation at the mine.

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