SYDNEY (Thomson Financial) - Australia's leading construction and contract mining group Leighton Holdings Ltd said on Monday its Thiess unit has been awarded a $250 million five-year coal mining contract in Indonesia.

The contract with Indonesia's PT Inkor Prima Coal includes overburden removal and mine support services at its Samboja coal mine in East Kalimantan, and is due to commence in June, it said.

CommSec equities analyst Savanth Sebastian said the contract adds to a spate of new construction and mining contracts won by Leighton in recent weeks, which means its work-in-hand has reached the A$12 billion mark for the year to June 2009, needed to maintain earnings growth.

New orders include the group's first contract with Rio Tinto Iron Ore, won last month. The contract, worth A$344 million, was the first to be awarded to Leighton by Rio Tinto.

The group, which is 54 percent owned by Germany's Hochtief AG, is also expanding in the Middle East through joint venture deals.

"Leighton's shares have risen 16 percent in the past month on the strength of the new work the group has won," said Sebastian, noting that Leighton still has the capacity to win more work before the end of the current June year.

At 12:30 pm (0130 GMT) was up 2.2 percent at A$48.34.

($1 = A$1.07)

bruce.hextall@thomson.com - bhx/nt