Global miner BHP Billiton is moving to gain control of its iron-ore mining operations in Australia's Pilbara region. Australia’s Leighton Holdings today announced it has signed a Heads of Agreement for the sale of the HWE Iron Ore entities and assets that provide iron ore contract mining services to BHP Billiton in Western Australia.

Chief Executive Officer, Mr David Stewart said “The Heads of Agreement relates to the mining equipment, people and related assets that service the Area C, Yandi and Orebody 23/25 operations.

"The three operations collectively account for around 70 per cent of BHP Billiton’s iron ore mining in Western Australia and currently represent around A$1.1 billion of annual revenue and A$1.4 billion worth of work in hand for the Leighton Group,” said Mr Stewart.

The purchase price, subject to working capital adjustments and final documentation, is expected to be around A$705million. The potential sale would recognise the creation of substantial value by Leighton since it purchased HWE Mining out of administration in 2006.

Mr Steward assured Leighton will work actively with BHP Billiton to ensure that its people are well looked after and informed throughout this process.

“One particular focus for us as we work with BHP Billiton to finalise the sale is the orderly transition of our around 2500 people,” he said.

the transaction is expected to close during the fourth quarter of calendar year 2011,subject to due diligence, definitive agreements and relevant internal and regulatory approvals,