highlights3 New leader for Leighton Asia 6 Embassy project breaks ground in Cambodia 4 Mining expertise lands Philippines contract 7 Preparing for success in China

THE LEIGHTON ASIA MAGAZINE | 2008 ISSUE 1

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A bigger Wynn for Leighton in Macau

Macau’s emergence as the world’s premier casino destination prompts further development

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Contents

is a quarterly newsletter produced by Leighton Asia. It provides information on developments, projects and issues relating to Leighton Asia, Leighton Holdings and associated companies operating across the Asia region.

If you would like to receive regularly, please email us on: INSITE@leightonasia.com

Published by: Leighton Asia, 39/F Sun Hung Kai Centre, 30 Harbour Road, Hong Kong.

t: +852 2823 1111 f: +852 2528 6119 e: INSITE@leightonasia.com www.leightonasia.com

THE LEIGHTON ASIA MAGAZINE | 2008 ISSUE 1

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About Leighton AsiaLeighton Asia is one of Asia’s leading contractors and project developers. Our strength lies in our ability to develop innovative, practical solutions for our clients. We have been operating in Asia since 1975, and our unique combination of local knowledge and extensive international experience has made us the region’s international contractor of choice.

Leighton Asia operates in Hong Kong, Macau, China, Mongolia, Taiwan, Korea, the Philippines, Guam, Thailand, Vietnam, Laos and Cambodia. We are part of the Leighton Group, Australia’s largest project development and contracting group, with annual revenues exceeding US$10 billion. The company benefits from its ability to call upon the experience and technical and financial expertise of the Group.

New leader for Leighton AsiaHamish Tyrwhitt appointed managing director of Leighton Asia Limited.

Mining expertise lands Philippines contractLeighton Asia to develop Philippines gold mine under a US$65 million contract.

A bigger Wynn for Leighton in MacauMacau's emergence as the world's premier casino destination prompts further development.

Embassy project breaks ground in CambodiaWork begins on construction of the new Australian Embassy in Phnom Penh, Cambodia.

Preparing for success in ChinaLeighton Asia narrows its focus after a recent review of markets in China.

Leighton lends a hand in MongoliaLeighton Asia supplies necessities to the Children's Nursing Center Kindergarten in Ulaanbaatar, Mongolia.

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Leighton Group on track for another strong resultLeighton Holdings expects to deliver another strong outcome for shareholders.

Leighton walks for natureLeighton staff members and their families take part in the World Wide Fund's 'Walk for Nature' in Hong Kong.

Partnerships with UNICEF and Mercy CorpsLeighton Asia partners with UNICEF and Mercy Corps to produce its Christmas cards and calendars.

Strong showing in 24-hour raceLeighton Asia's 'fittest and finest' compete in Hong Kong's 'Hebe Haven 24-hour charity dinghy race'.

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Subsequently, for the greater part of the time between 2004 and 2007, he headed Leighton

Contractors’ activities in the states of Victoria, South Australia, Tasmania and New Zealand.

During his years as general manager and director responsible for the Leighton Asia’s businesses in Malaysia and Brunei (2002-2004), he managed a number of high-profile construction projects including the:

• 26-kilometre tollway between Kuala Lumpur and Putrajaya

• double track rail upgrade from Kuala Lumpur to Ipoh

• Manjung power station

• Asia rare earth

• Singapore to Thailand optical fibre communications network

• national mobile phone base-station rollout for Maxis Malaysia

• coal storage and ship loading facilities at Manjung

• Duta Plaza retail centre

Prior to this, he was project director for the massive Teachers’ Housing Project in Malaysia, which was delivered on time and very profitably by a 6000-strong workforce. The project was the largest executed by Leighton Asia.

Hamish, who has a reputation for motivating teams to turn ideas into actions and driving continuous improvement, says that he is excited to be returning to Asia as Leighton’s managing director in the region.

“This is the most vital and progressive region of the world. I am proud to have been selected to

head the company’s many teams of dynamic people who are now driving the Leighton name forward by consistently delivering quality work for their clients.

“This is also a wonderful time for me to return to Asia, as so many nations are emerging as significant economic forces, with each requiring the wide range of infrastructure and industrial projects for their national development,” he said.

In his new position, Hamish has responsibility for the Leighton Group’s operations in Hong Kong, Macau, China, Mongolia, Taiwan, Korea, the Philippines, Guam, Thailand, Vietnam, Laos and Cambodia. n

New leader for Leighton Asia

Hamish Tyrwhitt has been appointed managing director of Leighton Asia Limited. He has been in Group companies since 1985 and in Asia since 1990. He has extensive experience of working in the region, having held operational and management positions covering Malaysia, Laos and Thailand between 1990 and 2004.

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Mining expertise lands Philippines contract

The Australian mining company, CGA, is reopening an existing gold mine at Masbate in the Philippines which originally produced over one million ounces of gold and 944,000 ounces of silver in the period from 1980 to 1994.

The mine is located at Masbate Island, some 350 kilometres from Manila, and the company

has contracted Leighton Asia as the EPC contractor to undertake the work under a US$65 million contract. Lycopodium will be working with the project team as the process design consultant.

The Leighton Group has vast experience in mining operations. It is the world's leading contract miner, extracting more than 100-million tonnes of iron ore and 100-million tonnes of coal each year, also gold and other minerals across Australia and Asia.

Masbate Island is said to be famed for its “beautiful white sand beaches, rock mountains and caverns, corals and manta rays”, but Leighton’s design and construct team will have little chance to enjoy these attractions.

The work to develop the mine includes:

• designing and constructing a 4 million tonne per annum (4Mtpa) carbon in leach (CIL) gold processing plant

• infrastructure development, including a tailings pipeline and pumping

• environmental measures

• building camp accommodation, roads, raw water and electrical reticulation

Because it is the site of a previously operating mine, the location is being described as a ‘brownfield site’. The facilities already there will assist the team to establish itself efficiently. They include an airstrip, roads, accommodation, offices, a clubhouse, workshops, assay laboratory, bunker fuel tanks and general reticulation.

The site is already equipped with a barge-loading jetty where heavy construction equipment and consumables can be delivered and offloaded.

The mine is readily accessible by sea, and materials and supplies can be barged in via Manila or other large ports. The existing infrastructure will allow construction to start relatively quickly and has reduced the capital expenditure required, compared with that of a greenfield site.

The work is expected to be completed by February 2009. Once commissioned, the mine will be handed over to CGA Mining to operate. n

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A bigger Wynn for Leighton in Macau

Macau, located about 60 kilometres south-west of Hong Kong, has been an

established gaming market for more than 40 years. A former Portuguese enclave, it was handed back to China in 1999 and operates as a Special Administrative Region of that country.

In 2006, its casinos exceeded the US$6.60 billion revenue from ‘games of fortune’ of the Las Vegas Strip for the first time.

Wynn Resorts, one of three concessionaires permitted to operate casinos in Macau, has now made major investments in gaming in Macau and is reaping the benefit of the city’s newfound popularity.

In joint venture with China State Construction Engineering, Leighton Asia has secured a HK$2.7 billion contract to design and construct a second fully integrated resort hotel for Wynn Resorts; to be named Wynn Diamond Suites.

This contract follows the initial contracts undertaken by the joint

venture in Macau for Wynn Resorts – the design and construction of a HK$2.5 billion five-star hotel and casino, completed in mid-2006 which was followed with a HK$1.8 billion expansion phase opened on Christmas Eve 2007.

The latest development for Wynn will have 106,000 square metres of developed floor space. Work started on the site, adjacent to the existing casino in June and completion is expected by March 2010.

Highlights of the building include:

• a 40-level curved tower with 400 luxury suites and villas. This means there will be an average of only ten mega-sized suites on each floor

• a 5-level podium with restaurants, a spa and a retail promenade

• additional VIP gaming areas

The foundations are approximately 60 metres deep and the four-level basement will be constructed using a top down sequence. n

The fast-growing popularity of Macau, and its recent emergence as the premier casino destination of the world, is prompting even further development in this dynamic city at the mouth of China’s Pearl River.

Development of the Wynn Diamond Suites, Wynn Resort’s second fully integrated resort hotel is in progress

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Embassy project breaks ground in Cambodia

Work has started on construction of the new Australian Embassy in Phnom Penh, Cambodia.

T he new embassy is situated on a one-hectare ‘greenfield’ site in a prime location -

adjacent to the recently opened National Assembly building and within clear view of the Ministry of Foreign Affairs.

This is the second project being undertaken by Leighton Asia in Indochina for the Overseas Property Office of the Australian government’s Department of

Foreign Affairs and Trade. It follows construction of the Australian Chancery in Lao P.D.R., which is due for completion this February.

Leighton’s project manager, Rod Kerr, said that the previous contract provided invaluable experience in matching the Australian specifications with conditions in less-developed markets.

The new embassy project includes a three-storey chancery building with high quality finishes and high level security, all related building services, road works and landscaping. It is scheduled for completion by April 2009.

H.E. Margaret Adamson, Australian Ambassador to the Kingdom of

Cambodia, said at a recent ground

breaking ceremony that the site

establishment works have progressed

very well in the short time since

Leighton Asia started working

on site.

The Australian Embassy arranged

the ceremony and it was attended

by members of the Australian and

Cambodian business community. A

special guest was the Cambodian

secretary of state H.E. Ouch Borith,

who represented the minister of

foreign affairs and international

cooperation H.E. Hor Namhong.

Those attending heard addresses

emphasising the close diplomatic

relations shared by the

two countries. n

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Following a recent review of Leighton’s markets in China, the company’s team has narrowed its focus, honing in on specific areas where its skills can best be used.

The conclusion of Leighton's evaluation is that international clients involved

in the construction, mining, and environmental sectors will be the primary focus for Leighton in China.

Currently, China has a strong focus on reducing pollution and on securing its long-term power needs. Aggressive targets have been set by the government to increase the level of renewable energy and to reduce waste and pollution. Leighton’s team is pursuing a range of opportunities that are coming from these initiatives.

Early in January, Leighton signed an agreement with a USA-based investment group to undertake feasibility studies at various sites across China, to convert municipal solid waste into renewable energy. The work involves investigating both existing plants and new sites, to determine the most suitable location and technology for future renewable energy power plants.

Ultimately, Leighton aims to oversee the design, procurement and construction of these plants throughout the country.

Leighton is also looking at renewable energy opportunities using other technologies, including biomass and wind.

In the building sector, Leighton has established associations with two leading Chinese companies, China State Construction and China Haisum Engineering, to pursue complex projects for clients who want the confidence of having an international project manager, and the local understanding to ensure cost effective pricing and stream-lined approvals.

Leighton has had considerable success with these two strategic partnerships,

exceeding client expectations in most respects, on projects as diverse as casinos in Macau, underground rail lines in Hong Kong, and industrial manufacturing facilities in mainland China.

Over the past few months, Leighton has been pursuing a role on the rollout of low to mid-range hotels in China with a potential client. This substantial opportunity is being jointly pursued with China State Construction.

“Last year, Leighton made substantial headway, establishing its reputation in China with clients and prospective partners. The company has entered 2008 with a far deeper understanding of this large and complex market. Now, in the ‘Year of the Rat’, the Leighton China team’s narrower focus is expected to pay dividends,” said Michael Wright, president of Leighton’s China and Mongolia operations.

In co-operation with fellow Leighton Group's Thiess Services, the China team is also looking at prospects in the ever growing market of waste management. n

Preparing for success in China

Nansha 3, China

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Recently, Leighton Asia assisted the Children’s Nursing Center Kindergarten in Ulaanbaatar, Mongolia, by supplying a consignment of necessities for the 120 orphaned children living there.

T his is the fi rst program of its type organised by Leighton Asia in Mongolia, a landlocked country

of about 3 million people located between China and Russia, and very rich in natural resources.

Mongolia's mining industry is on the brink of major change, with the government soon to vote on the Ivanhoe/Rio Tinto investment agreement for the massive Oyu Tolgoi project. If it goes ahead, the Oyu Tolgoi project will be a catalyst to the Mongolian economy, which currently relies on trade with China and Russia, and nomadic herding, the backbone of Mongolian culture and life.

Leighton announced its expansion into Mongolia early in mid 2007 and has now established a permanent presence there under Michael Wright, president of China and Mongolia.

Following fund raising late in 2007, Leighton donated two jeeps full of vitamins, skin care products, warm clothes and educational toys to the kindergarten, which accommodates some 120 children. The clothes were particularly appreciated as daytime maximum temperatures in

winter can hover around minus 15 degrees Celsius.

The vice director and manager of the centre, Tungalag Tsendjav, said that the kindergarten had been supported by the Mongolian government since it was established in 1970, but that this support had now been reduced to a very low level.

Showing their appreciation for Leighton’s gifts, the children put on a concert for Leighton's Mongolian staff. Both Thien Tran, our director of Mongolia, and Murun Enkhbat, our business development co-ordinator were there to see the show.

"It was a heart warming experience," said Murun. "Whilst the kids loved the toys, as kids do, the warm clothes were very well received and certainly needed." ■

Leighton lendsa hand in Mongolia

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At the company’s Annual General Meeting in November 2007, Chairman David

Mortimer told shareholders that the highlights of the financial year were:

• an excellent financial performance

• significant new strategic initiatives progressed

• great returns for shareholders

• dividends increased by 67% to 110 cents per share

• an average return on shareholders funds of 36.7% (ranking the company 15th out of the top 100 listed Australian companies)

“Total revenue, including joint ven-tures, was up by 19% to A$11.9 billion. The major contributors to the 2006/07 result have again been construction activity from a number of large Aus-tralian infrastructure projects, contract

mining in Australia and Asia, and another strong property development performance,” he said.

He also reported that the new fi-nancial year had started well for the Group with total revenue for the first quarter to 30 September 2007 up 9% to A$3.1 billion.

“This generated an operating profit after tax (unaudited) of A$98 million, an increase of 30% on the prior first quarter. These first quarter results are very pleasing and in line with our expectations,” he said.

Chief executive officer, Wal King said that the Leighton Group’s core markets were all running strongly in the company’s favour and should continue to do so for the foreseeable future.

“We are keen to expand our businesses in the growing markets of Asia and the Gulf region. Our investment in Al Habtoor Engineering, one of the

leading construction contractors in the region, brings significant capacity to enable us to fully capitalise on the opportunities in the Gulf market,” he said.

“The sustained strength of the Australian infrastructure market, complemented by the ongoing demand for Australia’s resources, provide support for the Group’s construction and contract mining activities.

“Globally, demand for raw materials is forecast to remain at very high levels into the foreseeable future, particularly for coal and iron ore, supporting the outlook for contract mining. The Group is the largest contract miner in the world and we want to further expand our international contract mining operations,” he said.

Leighton Holdings announces its half-year result on 14 February 2008. n

With half-year results about to be announced, Leighton Holdings expects to deliver another strong outcome for shareholders as anticipated at the last Annual General Meeting.

EastLink Tollway, Melbourne, Victoria, Australia

Leighton Group on track for another strong result

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Leighton was one of the sponsors of the event, which was held at Mai Po Nature Reserve in the

northern New Territories, close to the border with China.

Mai Po is a renowned birdwatcher's paradise. Every year, more than 50,000 migratory waterbirds come there for the winter, including a fifth of the world's population of the endangered black-faced spoonbills.

The World Wide Fund (WWF) runs various habitat enhancement projects to improve wetlands for the birds. It also monitors the birds and wildlife at the reserve regularly.

It chose climate change as the theme of the walk to educate the public on its urgency and growing impact on the natural environment.

A spokesperson for the WWF said that climate change was the most pressing environmental issue facing the world today and it was a serious threat to the world's biodiversity and ecosystems. n

A group of Leighton staff members and their families and friends recently took part in the World Wide Fund’s ‘Walk for Nature’ in Hong Kong.

Leighton walks for nature

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B y its initiative, Leighton Asia is supporting the fundraising efforts of these global

charities; helping people in need and making the cards and calendars more meaningful.

• UNICEF operates in more than 150 countries and territories to help children survive and thrive, from early childhood through adolescence. The world’s largest provider of vaccines for developing countries, UNICEF supports child health and nutrition, good water and sanitation, quality basic education for all boys and girls, and the protection of children from violence, exploitation, and AIDS. UNICEF is funded entirely by the voluntary contributions of individuals, businesses, foundations and governments.

• Mercy Corps works amid disasters, conflicts, chronic poverty and instability to unleash the potential of people who can win against nearly impossible odds. Since 1979, Mercy Corps has provided US$1.3 billion in assistance to people in 100 nations. Supported by headquarter offices in North America, Europe and Asia, the agency’s unified global programs employ 3400 staff worldwide and reach nearly 14.4 million people in more than 35 countries. n

Leighton Asia has partnered with the charitable organisations UNICEF and Mercy Corps to produce its Christmas cards and calendars this year.

Partnerships with UNICEF and Mercy Corps

A team of 18 employees

from head office and the

company’s projects around

Hong Kong and Macau took part

in the race, which raised money for

three charities:

• Children’s Cancer Foundation

• Enlighten - Action for Epilepsy

• Sunnyside Club

The competition involves a team sailing around a designated course as many times as possible in a 24-hour period. The Leighton team completed 64 laps in its 14ft Laser sailing boat; finishing 16th out of the 28 teams in the event.

The event organised by the Hebe Haven Yacht Club in Hong Kong is now in its fifth consecutive year and it

is fast becoming both an international

event and major attraction in

Hong Kong.

This year’s competition raised just

under HK$1 million dollars. Out of

this, the Leighton team contributed

an impressive HK$78,600 through

corporate, department, project, team

and individual sponsorships. n

Leighton Asia’s ‘fittest and finest’ in the region came together to compete in Hong Kong’s recent ‘Hebe Haven 24-hour charity dinghy race’.

Strong showing in 24-hour race

Head Office

Leighton Asia Limited

39/F Sun Hung Kai Centre30 Harbour RoadHong Kongt: +852 2823 1111f: +852 2529 8784

Hong Kong

Leighton Contractors(Asia) Limited

39/F Sun Hung Kai Centre30 Harbour RoadHong Kongt: +852 2823 1111f: +852 2529 8784

China

Leighton Projects Consulting(Shanghai) Limited

Suite 14B, 14/F New Shanghai International Tower360 Pudong South RoadShanghai200120 P.R.C.t: +86 21 5882 3345f: +86 21 5882 4029

Room 1208-121012/F Oriental Media Center4 Guanghua Road, Chaoyang DistrictBeijing100026 P.R.C.t: +86 10 6583 2727f: +86 10 6583 3915

Mongolia

Leighton Mining and InfrastructureMongolia Ltd

Room 511Gurvan Gal Trade LLC BuildingSukhbatar District 1st khorooChinggis Avenue 8-1UlaanbataarMongoliat: +976 11 330 228f: +976 11 330 228

Philippines

Leighton Contractors(Philippines) Inc.

7/F L.V. Locsin Building6752 Ayala AvenueMakati City 1226Philippinest: +63 2 841 0998f: +63 2 811 0158

Guam

Leighton Contractors Inc.

301 East West Business Center Building718 North Marine Corps DriveUpper TumonGuam 96913t: +1 671 648 2244f: +1 671 648 2247

Thailand

Thai Leighton Limited

6/F SPC Building1 Soi ChaemchanSukhumvit 55Klongton Nua, WattanaBangkok 10110Thailandt: +66 2 714 8580f: +66 2 391 4503

Vietnam

Leighton Contractors Asia(Vietnam) Limited

Level 2, Kimdo Business Centre123 Le Loi StreetDistrict 1Ho Chi Minh CityVietnamt: +84 8 821 5524f: +84 8 821 5523

4/F SIMCO BuildingPham Hung RoadMy Dinh CommuneTu Liem DistrictHanoiVietnamt:+ 84 4785 4053f: +84 4785 4061

Laos

Leighton Contractors(Laos) Co. Ltd.

265 Bangalow RoadPhonesinouane VillageVientianeLao P.D.R.t: +85 6 21 415 356f: +85 6 21 415 357

Cambodia

Leighton Contractors Asia(Cambodia) Co. Ltd.

Unit 39 & 40 Phnom Penh Hotel53 Monivong BoulevardSangkat Srah ChakKhan Daun PenhCambodiat: +855 23 998 706f: +855 23 998 706

Leighton Asia

www.leightonasia.cominfo@leightonasia.com

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