Leighton ties up HWE purchase

01 February 2006 | 03:34 Code : 7782 Geoscience events
The new business, to be known as HWE Mining, will encompass 15...
LEIGHTON Contractors has completed the acquisition of the profitable Australian and New Zealand mining business of failed contractor Henry Walker Eltin (HWE) for $A211 million.
The new business, to be known as HWE Mining, will encompass 15 sites with a combined turnover of about $A650 million per annum, work-in-hand of $A1.6 billion and a workforce of 1800. The HWE purchase brings Leighton Contractors' work in-hand to $A3.8 billion and its employee base to 5000.HWE holds contracts with a number of iron ore, gold, nickel and coal mining players, including BHP Billiton, OneSteel, Portman, Newmont, Dominion, Fox Resources, Consolidated Minerals, Gloucester Coal and Solid Energy.The sale sum includes $A78 million for trade debtors with the balance principally for plant and equipment. Leighton will assume ongoing business liabilities including lease, hire purchase, operating lease and plant hire liabilities and replacing bank guarantees.Leighton intends to finalise the purchase of HWE's 50% joint venture share in the Pilbara-based Indigenous contracting company Ngarda Civil & Mining.

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