BHP Billiton has signed a Heads of Agreement with Leighton Holdings to acquire HWE Mining subsidiaries for $705 million.

 

The agreement includes the purchase of equipment, labour and related assets that serve the Area C, Yandi and Orebbody 23/25 operations.

 

HWE Mining, which provides contract mining services to Western Australian iron operations, accounts for almost 70 per cent of Western Australia iron ore material movement.

 

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.