By Rhiannon Hoyle
SYDNEY--Leighton Holdings Ltd. (LEI.AU) said Friday its Thiess
subsidiary had suspended operations at Indonesia's Senakin and
Satui coal mines in a dispute over payments with joint venture
owners Bumi Resources (BUMI.JK) and Tata Steel Ltd.
(500470.BY).
Sydney-based Leighton said Thiess stopped work at the site on
April 26 as it pursued "the payment of net project receivables, or
underclaims, to which Leighton has a contractual entitlement." The
group said in a stock exchange filing that it was confident the
dispute would be resolved and work would restart at the mines,
without providing a timeline.
The company added it shouldn't affect annual earnings, forecast
between 520 million Australian dollars (US$502 million) and A$600
million. The Senakin and Satui mines accounted for 1.5% of total
group revenue in 2012.
The company's statement followed a fall in its shares of as much
as 7% early Friday. The stock has pared some of its losses, trading
down 4.6% at A$17.65 a share at 0541 GMT.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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