These businesses within Skanska UK were part of Kvaerner Construction (UK), which Skanska acquired in 2000 and include those worldwide mine design, mine development, mine engineering and mine contracting services and contract mining operations which are considered to be outside the core business of Skanska. The total net revenue in the year to December 2002 of the businesses to be acquired was ZAR 1,5 billion (CAD 225 million; AUD 240 million), with an operating profit of ZAR 44 million (CAD 6,6 million; AUD 7,2 million).

Murray & Roberts group chief executive Brian Bruce says, “Clients in the global mining resources sector are looking to their contractors for higher levels of services integration in the development and expansion of their underground assets and activities. This includes enhanced feasibilities, design-build integration and longer-term mining operations.” He adds that ongoing consolidation in the resources sector has challenged Murray & Roberts to expand its capacity to serve its clients across all global markets.

“The change in risk allocation associated with these trends demands that we pursue a strategy of greater critical mass and a more effective global presence,” says Bruce. He adds, “The Cementation mining business has been at the forefront of underground mining development for the past 80 years and will complement our existing capability serving the global resources sector.” These include underground mine development, shaft sinking and raise-boring, design and engineering of both underground works and minerals processing plants, civil and building construction, mechanical, electrical and instrumentation installations and the supply of specialist products such as mine support systems.
Following completion of normal due diligence, the intention is for a sale and purchase agreement to be signed in January 2004, with such agreement being subject to regulatory approvals. Financial closing of the transaction is anticipated during the first quarter of 2004.

Murray & Roberts has held a leading but focused position in the global mining contracting market for many years, particularly in the specialist field of large diameter mechanical boring of vertical shafts. This acquisition of the Cementation mining operations will add a new dimension to Murray & Roberts, making it one of the world’s leading underground mining services companies.

For further information please contact
The Office of the Group Chief Executive
Murray & Roberts Holdings Limited

Attention Ms Gwendolene Lilleike

Telephone: +27 11 456 6282
Facsimile: +27 11 455 3524
e-mail: gwen.lilleike@murrob.com