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| Leighton flags sale of Pilbara iron ore business to BHP Billiton Leighton Holdings Ltd announced that it has signed a Heads of Agreement for the sale of the HWE Iron Ore entities and assets that provide iron ore contract mining services to BHP Billiton in Western Australia. Chief Executive Officer, Mr David Stewart said that BHP Billiton's publicly stated intention to transition to an owner operator model was widely known and the potential sale of the Pilbara based iron ore assets represents a positive result for both parties. "The Heads of Agreement relates to the mining equipment, people and related assets that service the Area C, Yandi and Orebody 23/25 operations. The three operations collectively account for around 70 per cent of BHP Billiton's iron ore mining in Western Australia and currently represent around A$1.1 billion of annual revenue and A$1.4 billion worth of work in hand for the Leighton Group, " said Mr Stewart. "The purchase price, subject to working capital adjustments and final documentation, is expected to be around A$705million. The potential sale would recognise the creation of substantial value by Leighton since it purchased HWE Mining out of administration in 2006. Subject to due diligence, definitive agreements and relevant internal and regulatory approvals, the transaction is expected to close during the fourth quarter of calendar year 2011. write your comments about the article :: © 2011 Construction News :: home page |