RAG increases stake in Queensland Coal

Issue Date:  17 January 2003
Issued By:  Leighton Holdings Limited

Company Announcements Office
The Australian Stock Exchange Limited
Level 4
20 Bridge Street
Sydney NSW 2000

Re: RAG increases stake in Queensland Coal

Dear Sir,

Please find attached a copy of a media release to be issued today by Thiess Pty Ltd, a wholly owned subsidiary of Leighton Holdings Limited.

Yours sincerely,


A.J. MOIR
Company Secretary

RAG increases stake in Queensland Coal

Issue Date: 16 January 2003
Issued by: Thiess Pty Ltd

RAG Australia Coal (RAGAC) has today taken full equity in the North Goonyella Underground Coal Mine after the company acquired Thiess Pty Ltd's 40 percent stake.

The sale, which is subject to a confidentiality agreement between the two companies, supports both RAGAC's commitment to increased investment in Queensland's coal resources, as well as Thiess' strategy to not hold long-term major equity in coal mines.

As part of the sale negotiations, the two companies also agreed that RAGAC would take over future mine operations, valued at $238 million.

Thiess Executive General Manager, Qld/NT/Pacific Mr Murray Fox said the sale was positive for both companies.

“RAGAC is focussed on increasing its exposure to Queensland's coal resources, and RAGAC and Thiess are negotiating the operation of the potential $65 million Eaglefield opencut development at North Goonyella,” he said.

“I wish RAGAC all the best for the future management and operation of North Goonyella Underground Mine and look forward to our continued strong relationship at Burton Open Cut Coal Mine and beyond.”

North Goonyella is situated 180km west of Mackay and produces up to three million tonnes of hard coking coal per annum for export to European and Asian markets.

Ends.    

Thiess Pty Ltd - ABN 87 010 221 486

For further information contact:
Mr Murray Fox
Executive General Mgr, Qld/NT/Pacific
Thiess Pty Ltd
Tel: 07 3368 0200

Mr Darian Hielscher
Managing Director
RAG Australia Coal
Tel: 07 3225 5500

Ms Fiona Murcott
Public Affairs Manager
Thiess Pty Ltd
Tel: 0419 758 196