Leighton secures new loan to support Indonesia operations

ASX-listed mining firm Leighton Holdings Ltd said it has closed syndicated master lease facility worth US$600 million to support mining operations in Indonesia.

The new 6-year facility streamlines Leighton?s existing Indonesian leasing arrangements and provides the company?s two operating subsidiaries in Indonesia with additional capacity to fund their expanding mining activities.

Leighton Holdings? Chief Financial Officer, Peter Gregg, said the new facility highlighted the strength of the Company and its ability to secure additional funding in the current financial market.

?Leighton is in a very strong position globally with more than $46 billion work in hand and. positive exposure to growth markets particularly in the infrastructure and resources sectors in Asia and Australia,? Gregg said.

?This new facility will enable us to take advantage of the many opportunities available to the business in that country,? he said.

Last month Leighton subsidiary Thiess was awarded a US$500 million contract extension for the further development and operation of the Teguh Sinar Abadi and Firman Ketaun Perkasa Coal Mines, near Melak in East Kalimantan .

The master lease facility was arranged by the Australian and New Zealand Banking Group Limited (ANZ) and is being provided by a syndicate of nine banks. (romel)