Australia's Leighton selling iron ore mining business
Sydney - Australia's Leighton Holdings Ltd said Tuesday it would sell its principal contract iron ore mining business in Western Australia to global mining giant BHP Billiton Ltd.
Leighton said around 705 million Australian dollars (735 million US dollars) would be raised from the sale of its HWE Iron Ore subsidiary. HWE represents 70 per cent of BHP's iron ore mining in Western Australia and 1.1 billion Australian dollars of Leighton's annual revenue.
Leighton chief executive David Stewart said Leighton, which has flagged a loss for the financial year that ended in June at 408 million Australian dollars, was not exiting contract mining.
'We remain the world's largest contract miner and continue to see resource-related opportunities opening up in markets like Mongolia, Southern Africa, South-East Asia and the other parts of Australia,' he said in a statement to the stock exchange.
BHP advised the stock exchange that the deal would be finalized by the end of the year.
'The proposed acquisition is consistent with BHP Billiton's previously stated intention to move the Western Australia Iron Ore business from contract mining to owner-operated mining,' the company said in a statement.
Leighton said around 705 million Australian dollars (735 million US dollars) would be raised from the sale of its HWE Iron Ore subsidiary. HWE represents 70 per cent of BHP's iron ore mining in Western Australia and 1.1 billion Australian dollars of Leighton's annual revenue.
Leighton chief executive David Stewart said Leighton, which has flagged a loss for the financial year that ended in June at 408 million Australian dollars, was not exiting contract mining.
'We remain the world's largest contract miner and continue to see resource-related opportunities opening up in markets like Mongolia, Southern Africa, South-East Asia and the other parts of Australia,' he said in a statement to the stock exchange.
BHP advised the stock exchange that the deal would be finalized by the end of the year.
'The proposed acquisition is consistent with BHP Billiton's previously stated intention to move the Western Australia Iron Ore business from contract mining to owner-operated mining,' the company said in a statement.
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