Leighton loses BHP contract
PERTH (miningweekly.com) – Mining giant BHP Billiton has cancelled the mining contract with project house Leighton at its Peak Downs coal mine, in Queensland, effective from July 3.
Leighton told shareholders that the cancellation of the contract would result in some A$260-million worth of reduction in work over the two years, to 2015. However, under the terms of the contract, Leighton would be entitled to compensation for early termination.
The Peak Downs mine is one of seven Queensland operations jointly owned and operated by BHP and its alliance partner Mitsubishi.
In August last year, BHP announced that it would delay the 2.5-million-ton-a-year expansion of the Peak Downs coal operation associated with the Caval Ridge mine development, in Queensland.
The 5.5-million-ton-a-year Caval Ridge mine remained on schedule to deliver first production by 2014.
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