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BIL
BIBLT
BIL - BHP Billiton Plc - BHP Billiton to acquire HWE Mining subsidiaries
BHP Billiton Plc
Share code: BIL
ISIN: GB0000566504
NEWS RELEASE
Release IMMEDIATE
Time
Date 9 August 2011
Number 23/11
BHP BILLITON TO ACQUIRE HWE MINING SUBSIDIARIES
BHP Billiton has signed a Heads of Agreement with Leighton Holdings to
acquire the HWE Mining subsidiaries that provide contract mining services to
its Western Australia Iron Ore operations. The Heads of 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. The purchase price is US$735 million (A$705 million), subject to
working capital adjustments.
BHP Billiton President Iron Ore, Ian Ashby said: "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 as it would
be challenging to replace the highly skilled and long serving HWE employees
in the current environment."
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. 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.
Further information on BHP Billiton can be found at: www.bhpbilliton.com
Sponsor: Absa Capital (the investment banking division of Absa Bank Limited,
affiliated with Barclays Capital)
Media Relations Investor Relations
Australia Australia
Samantha Stevens Andrew Gunn
Tel: +61 3 9609 2898 Tel: +61 3 9609 3575
Mobile: +61 400 693 915 Mobile: +61 439 558 454
email: Samantha.Stevens@bhpbilliton.com email: Andrew.Gunn@bhpbilliton.com
United Kingdom and South Africa
Kelly Quirke
Tel: +61 3 9609 2896 Brendan Harris
Mobile: +61 429 966 312 Tel: +44 20 7802 4131
email: Kelly.Quirke@bhpbilliton.com Mobile: +44 7990 527 726
email:
Fiona Martin Brendan.Harris@bhpbilliton.com
Tel: +61 3 9609 2211
Mobile: +61 427 777 908 Americas
email: Fiona.Martin2@bhpbilliton.com
United Kingdom and Americas Scott Espenshade
Tel: +1 713 599 6431
Ruban Yogarajah Mobile: +1 713 208 8565
Tel: US +1 713 966 2907 email:
or UK +44 20 7802 4033 Scott.Espenshade@bhpbilliton.com
Mobile: UK +44 7827 082 022
email: Ruban.Yogarajah@bhpbilliton.com
BHP Billiton Limited BHP Billiton Plc Registration
ABN 49 004 028 077 number 3196209
Registered in Australia Registered in England and Wales
Registered Office: 180 Lonsdale Street Registered Office: Neathouse Place
Melbourne Victoria 3000 Australia London SW1V 1BH United Kingdom
Tel +61 1300 55 4757 Tel +44 20 7802 4000
Fax +61 3 9609 3015 Fax +44 20 7802 4111
Members of the BHP Billiton Group which is headquartered in Australia
Date: 10/08/2011 07:05:04 Produced by the JSE SENS Department.
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