Leighton wins $186m contract

Subsidiary Thiess to build coal handling and preparation plant for Boggabri Coal.

Leighton Holdings (LEI) subsidiary Thiess has won a $186 million contract to design and construct a coal handling and preparation plant for Boggabri Coal Pty Ltd.

In a statement to the Australian Securities Exchange, the Thiess Sedgman joint venture said the plant would support Boggabri Coal's mining operation in the Gunnedah Basin in New South Wales as it expands annual production to 6.9 million tonnes.

The contract has a direct value to Leighton of $124 million through Thiess and its 33% stake in Sedgman.

Design and procurement work is underway with the plant scheduled for completion in the second quarter of 2015.

Leighton chief executive Hamish Tyrwhitt said the contract shows the group's capability.

"Sustained global demand for resources – primarily out of Asia – will continue to underpin a good range of opportunities for the group for the foreseeable future," Mr Tyrwhitt said.

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles