05/12/2008 - 11:04

Mineral Resources plans share buy-back

05/12/2008 - 11:04

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Mining services company Mineral Resources has secured a pipeline contract with Brunei Shell Petroleum as it announced a share buy back scheme in a bid to boost shareholder value.

Mining services company Mineral Resources has secured a pipeline contract with Brunei Shell Petroleum as it announced a share buy back scheme in a bid to boost shareholder value.

The Bibra Lake-based company said its subsidiary PIHA has recently secured a number of contracts including a further deal with Boddington gold mine to install tailings pipelines.

The company also announced plans to buy back up to 12 million shares over the next 12 months

"The on-market buy back will not impact Mineral Resources' ongoing capital expenditure and business development requirements or its capacity to pay fully franked dividends for the foreseeable future," Mineral Resources said.

 

Both announcements are pasted below:

 

Diversified mining services and processing company, Mineral Resources Limited (ASX:MIN) through its subsidiary, PIHA Pty Ltd, has been awarded a number of substantial infrastructure and maintenance contracts for Australian and International clients.

The latest pipe lining contract awarded by Brunei Shell Petroleum cements PIHA's outstanding relationship with the world wide oil and gas producer and substantially improves on the solid order intake in 2008.

Other pipelining maintenance contracts currently in progress includes packages with BHPB's Olympic Dam Operation amongst other significant process operators currently undertaking major maintenance activities to gear up for production volume improvement in 2009 and beyond.

The contract with Shell is in addition to PIHA being awarded a further contract to install HDPE tailings pipelines at the Boddington Gold Mine and follows on from the current scope of work where the installation of lined steel pipelines from the process plant is in progress.

These latest wins increases PIHA's work on hand well into the third quarter of 2009 with a solid pipeline of opportunities in the construction and maintenance areas to potentially expand the order book.

"PIHA's order book has continued to be maintained at record levels as companies fast-track mine developments and also undertake major maintenance programmes to improve efficiency and expand capacity for the future. PIHA's reputation for its tight-fit lining technology has given it a strong position in pipeline rehabilitation and incorporating polyethylene lining in new pipeline installations." said Executive Chairman, Peter Wade.

PIHA polyethylene pipelining expertise is world-class, providing clients with a cost effective method for rehabilitating pipelines and also improvements in flow and wear characteristics to carry abrasive and corrosive materials.

PIHA is a multi-disciplinary pipeline construction and civil engineering business which has a reputation as an industry-leader and innovator in some of the most technically challenging and advanced areas in this highly specialised field. With a well-established market presence and outstanding track record in its key markets, PIHA is a strong growth business which continues to target new opportunities in the utilities and infrastructure, civil contracting, mining and oil & gas industries. PIHA's range of services includes pipelining, pipeline and cable installations, maintenance, borefield operation and project management.

 

Mineral Resources Limited (ASX:MIN) today announced its intention to enter into an on-market buy back of up to 12 million shares over the coming 12 months.

The Company has reviewed available capital management options and the Mineral Resources board believes that an on-market buy back is an effective and value-accretive method to return capital to shareholders. The Company's strong net cash position provides it with the flexibility to take advantage of the current market environment.

The on-market buy back will not impact Mineral Resources' ongoing capital expenditure and business development requirements or its capacity to pay fully franked dividends for the foreseeable future.

 

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