Restructure of the Stanwell Magnesium Project

Issue Date:  16 June 2003
Issued By:  Leighton Holdings Limited

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

Re: Restructure of the Stanwell Magnesium Project

Dear Sir,

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

Yours sincerely,


A.J. MOIR
Company Secretary

Restructure of the Stanwell Magnesium Project

Issue Date: 16 June 2003
Issued by: Leighton Contractors Pty Limited

Leighton Contractors has joined with other key stakeholders to support Australian Magnesium Corporation Limited’s (AMC) plans to restructure its Stanwell Magnesium Project, as per the announcement made by AMC to the Australian Stock Exchange on Friday.

Leighton Contractors managing director, Mr Bob Merkenhof said, “We have mutually agreed with AMC to terminate the current Engineering, Procurement and Construction (EPC) contract and to enter into a joint venture arrangement to preserve and develop project assets for future development.”

“Unfortunately we will be reducing our workforce significantly, either by redeployment where possible or by redundancy.  All departing employees will receive their full entitlements.

“Because of these events we will reduce the value of work in hand that we had recorded for the project by $300 million,” Mr Merkenhof said.

Leighton Contractors is an Australian market leader in the delivery of complex infrastructure, project development, building, contract mining and construction. The company currently has in excess of $2 billion worth of work in hand and employs over 2,000 people.   

For further information, please contact:

Bob Merkenhof
Manager Director
Leighton Contractors     
T: (02) 9925 6953    

Annie Stante
Manager, Corporate Affairs
Leighton Contractors
T: (02) 9925 6675