Fortescue increases Leighton contract

Fortescue Metals Group Ltd has increased the value of Leighton Holdings Ltd's contract to work on the Kings deposit at the Solomon Hub.

Fortescue Metals Group Ltd has increased the value of Leighton Holdings Ltd's contract to work on the Kings deposit at the Solomon Hub.

In a statement to the Australian Securities Exchange, Leighton said Fortescue had awarded it a $1.3 billion contract variation, lifting the total value of the agreement to $2.8 billion - the largest single contract in Leighton's history.

Leighton Holdings chief executive officer Hamish Tyrwhitt said the group continued to deliver value and cost effective solutions for its mining clients.

"Our unique position as the world’s largest contract miner, combined with our scale and diversity, continues to generate opportunities for the Leighton Group at the same time as delivering expertise and value to the mining sector," he said.

Leighton completes $600m refinancing

Separately, Leighton said it had successfully completed the refinancing of a $600 million Syndicated Cash Advance Facility launched in late April.

The group said strong support was received from a consortium of Australian and international banks with total subscriptions of over $1 billion.

"The transaction was launched at $700 million and the company has decided to take oversubscriptions of $300 million bringing total commitments to A$1 billion," Leighton said.

"The proceeds will be used for working capital and general corporate purposes.

Deputy chief executive officer and chief financial officer Peter Gregg said the refinancing forms an integral part of the group's capital management program.

"We are diversifying and extending our funding sources, strengthening our balance sheet and effectively managing our capital to ensure we can grow from our existing financial base," Mr Gregg said.

"Our focus is on driving working capital and capital expenditure improvements, and recycling capital from non-core assets."

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