20 September, 2011
BHP Billiton Iron Ore acquisition due diligence completed
The process for completing BHP Billiton Iron Ore’s acquisition of the HWE Mining Pilbara operations at Area C, Yandi, and Orebody 23/25 has progressed smoothly and due diligence has now been completed.
9 August, 2011
Heads of Agreement signed between Leighton Holdings and BHP Billiton Iron Ore
Leighton Holdings Limited, parent company of Leighton Contractors, has signed a Heads of Agreement for the transfer of specific HWE Mining subsidiaries involved in iron ore operations for BHP Billiton in the Pilbara region of Western Australia. Read full media release here >>.
The Heads of Agreement marks the start of the due diligence period, during which time both companies will negotiate the inclusions of the sale.
Q: What is the nature of this deal?
A: This announcement is a Heads of Agreement between Leighton Holdings (parent company of Leighton Contractors) and BHP Billiton regarding the terms of a proposed acquisition by BHP Billiton of specific HWE Mining subsidiaries. The Heads of Agreement relates to the mining equipment, people and related assets that service the Area C, Yandi and Orebody 23/25 operations in the Pilbara region of Western Australia.
Q. What sites will be affected?
A:Yandi, Mining Area C and Orebody 23/25.
Q. When will it happen?
A: We expect the deal to be completed by the end of 2011, but this will be subject to a due diligence and approval process.
Q: What does the deal include?
A: The proposed acquisition focuses on three distinct HWE Mining subsidiaries servicing the mining agreements with BHP Billiton Iron Ore:
- HWE Newman Mining - holds the contract mining agreements with BHP Billiton;
- HWE Newman Services - holds the dedicated workforce; and
- HWE Newman Assets - holds the mining equipment and assets.
Q: Is the intention to acquire all of HWE Mining?
A: No. The proposed acquisition only relates to HWE Mining subsidiaries that hold and service the contract mining agreements with BHP Billiton Iron Ore – being HWE Newman Mining, HWE Newman Services and HWE Newman Assets. HWE Mining’s other subsidiaries are not included in this transaction and contracts with other clients will not be affected.
Q: Why has BHP Billiton offered to buy these specific HWE Mining subsidiaries?
A: BHP Billiton made its intentions known publicly in 2008 to move to an owner operator model. HWE Mining has been an integral part of BHP Billiton’s iron ore operations in the Pilbara since 1991 and the sale of the relevant parts of HWE Mining and associated services will ensure BHP Billiton can continue to operate effectively and efficiently.
Q: Why is Leighton Holdings selling these HWE Mining subsidiaries to BHP Billiton?
A: This is a positive outcome for both parties. Leighton Holdings bought Henry Walker Eltin out of administration in 2006 and since this time we have been successful in re-invigorating these assets and growing the business. The sale will generate substantial cash for reinvestment and allow Leighton Contractors to focus on further growing and diversifying its client and capability offering in Western Australia and elsewhere in Australia.
Q: What does this mean for HWE Mining?
A: If the transaction proceeds, the remaining components of HWE Mining will continue to be part of Leighton Contractors’ Resources Division. Leighton Contractors will remain one ofAustralia’s largest contract mining companies.
Q: Will the transferred assets continue to operate as HWE Mining under BHP Billiton?
A: No. HWE Mining Pty Ltd will remain a company and brand owned by Leighton Holdings and part of Leighton Contractors.
Q: What are future employment prospects with Leighton Contractors?
A: Our business is expected to double in size over the next five years so career prosects with us are very good. We hold mining contracts at 16 other mine sites across Australia and New Zealand and these operations remain business as usual. We are also tendering for a number of new significant mining opportunities in Western Australia. All available positions can be viewed via the Careers page.
Q: Who can I contact for more information about the proposed transaction?
A: We are committed to keeping all our people, partners and industry colleagues informed throughout this period of change and have a number of channels in place to reach all those affected.
If you are a client, supplier or subcontractor, you can email External Affairs with your enquiry and we will direct it to the most appropriate person.
If you are a current employee, you can access up-to-date information, including contacts, on the Leighton Contractors Intranet or through your manager.
All media specific enquiries should be directed to Carly France, Media Relations Manager on P: 0438 900 445.