Leighton eyes Mongolia’s golden hoard
www.news.com.au writes that,
CONSTRUCTION and mining giant Leighton plans to team up with Russia’s richest man for a push into Mongolia and Siberia.
Leighton chief executive Wal King yesterday confirmed the plans after announcing a record profit of $608 million, up 35 per cent from last year.
The company is also to go to the market for $700 million through a share offer backed by its majority shareholder, German construction giant Hochtief.
Mr King forecast slower profit growth of 15 per cent next year, but said the company was ready to take on the difficult economic environment. He said the credit crisis, skills shortages, rising construction costs and the introduction of emissions trading were the main challenges facing the company.
Leighton’s Russian move has been in the works since at least last year, when Mr King first confirmed the company’s interest in the region.
Mr King said Leighton was in discussions to establish a mining joint venture with Russian oligarch Oleg Deripaska and his Basic Element group.
Forbes magazine’s annual global survey of billionaires places Mr Deripaska as Russia’s richest man and the ninth richest in the world, with an estimated worth of $US28 billion.
Mr King said the proposed joint venture would mine in Mongolia and Eastern Siberia.
“Mongolia does have significant mineral deposits and it’s a question of how they develop those,” he said.
“We have exchanged correspondence (with Basic Element) and we are waiting for the next step.
“It’s works in progress. We have a very strong and friendly relationship with the Basic Element group.”
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