Leighton Holdings gets US$350 million contract

Australia''s biggest construction company, Leighton Holdings Ltd has been awarded a US$350 million contract for the expansion of mining services at MSJ coal mine in Indonesia for PT Mahakam Sumber Jaya (MSJ).

The company said the expansion, extending over five years, would commence immediately and be completed in April 2013. Leighton has obtained $1 billion of project work in the last twelve months in Indonesia.

Leighton has been operating the mine since May 2004, when it signed an initial three-year contract. An additional $125 million, three-year extension was signed in July last year. The new contract includes the removal of overburden, the loading and transportation of coal from the mine site to the port, and maintenance of the mine''s haul road.

OceanaGold share sinks as mine budget is revised upwards

Australian gold producer, OceanaGold Corp''s share sank to a record 30% in Sydney trading today after it revised its cost estimate for building a mine by over 100%. The company revised the cost of building Didipio mine in the Philippines to $320 million from $154 million and may have to sell shares to raise capital.

The addition funding was expected to cover a $33 million power plant and engineering cost. Meanwhile the company yesterday announced in a statement that its board member, Kerry MacDonald had decided not to stand for re-election to the board of directors.

Shares in ABC rise on new measures

Shares in ABC Learning Centres Ltd gained 6% after investors digested child care initiatives announced in the federal budget.

The government would raise childcare tax rebate from 30% to 50%, with the rebate being paid on a quarterly basis. The baby bonus would be raised to $5,000 a year from July 1 and would be available only to families with a combined annual income of less than $150,000 by January 1.

The new measures is likely to help ABC which was pressured into selling 60% of its US operations to Morgan Stanley Private Equity after company failed to refinance its debt obligations.

Gladstone Pacific Nickel considers selling stake in a nickel refinery

Australian firm, Gladstone Pacific Nickel Ltd is considering selling its stake in a $3.65 billion nickel refinery and mine in Australia to its Chinese partner China Metallurgical Group to speed development. The Chinese company has an agreement with Gladstone on an initial construction and funding accord that was signed in January.

Gladstone'' managing director, John Downie said they might sell a 30% stake in the project. There was no comment from China Metallurgical. MCC is also building the $1.37 billion Ramu nickel mine in Papua New Guinea to feed demand in China, the biggest user of the metal.

The company wants to build a nickel and cobalt refinery in Australia''s Queensland State to produce as much as 120,000 metric tons of nickel a year, or 10 percent of global supply. First output from the refinery is scheduled for 2011.

National Australia Bank leaves counterbid option for St George open

National Australia Bank chief executive John Stewart today left open his company''s option of making a counterbid for St George Bank, a day after the St George board endorsed a $19 billion takeover by Westpac. The two banks have entered into two weeks of exclusive negotiations. Stewart told the press that they were watching the developments with keen interest.

NAB''s share fell 2% while St George''s share was up 2.6% and Westpac was down 0.6%.