BHP Billiton acquire HWE Mining subsidiaries $735 million

BHP Billiton to acquire HWE Mining subsidiaries for $735 million

12:31 PM, 9th August 2011
BHP Billiton to acquire HWE Mining subsidiaries for $735 million
Ian Ashby, President Iron Ore, BHP Billiton.

 

MELBOURNE, AUSTRALIA: BHP Billiton agreed with Leighton Holdings to acquire HWE Mining subsidiaries that provide contract mining services to its Western Australia Iron Ore operations. The purchase price is $735 million (A$705 million), subject to working capital adjustments. Subject to due diligence and regulatory approvals, the transaction is expected to close during the fourth quarter of calendar year 2011.

The agreement relates to the mining equipment, people and related assets that service the Area C, Yandi and Orebody 23/25 operations. These operations collectively account for almost 70 per cent of Western Australia Iron Ore’s total material movement.

“While this move to an owner-operator model will remove a layer of complexity and costs from our business, the real focus of this proposed transaction is the work force. Transitioning to owner operator in this way, rather than by replacing contractors through direct recruitment, is a lower risk strategy,” said Ian Ashby, President Iron Ore, BHP Billiton.

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-operator mining.

© WOC News

 

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