Multi-billion dollar sale for mining company
Boasting a significant presence in several of Central Queensland's mines, the world's largest mining services provider Thiess has been involved in a successful multi-billion dollar sale.
Thiess provides contract mining, mine development, remediation and processing services to 25 projects in Australia, Africa, North America, South America, Europe and Asia, across a range of commodities, generating an annual revenue in excess of $4.1 billion.
In Central Queensland, it provide its expertise for a number of coal mines including Peak Downs, Caval Ridge, Burton, Curragh, Collinsville, Lake Vermont, South Walker Creek, Jellinbah Plains, Dawson South, and QCoal Northern Hub.
In October, Thiess's parent company, construction giant CIMIC, revealed plans to sell half of its share in Thiess to Elliott Advisers, the British arm of US hedge fund Elliott Management.
CIMIC confirmed to the The Australian on Thursday it had finalised the sale for $2.2 billion - well above the $1.7 billion to $1.9 billion estimate it provided when announcing the deal.
According to CIMIC, the additional cash reflected "transaction closing adjustments and the final financial position of the underlying Thiess business" and it would be put towards paying down debt and helping grow the company's other businesses.CIMIC Group Executive Chairman and Chief Executive Officer Juan Santamaria said the 50 per cent sale of Thiess enabled them to capitalise on the sector outlook and Thiess' strong performance.
"The transaction proceeds will primarily be used to strengthen our balance sheet through the reduction of debt, while also providing additional capital to pursue organic growth prospects as well as broader capital allocation opportunities," Mr Santamaria said.
"Our retention of the remaining 50% reflects the ongoing strategic importance of Thiess to our business."
From humble beginning as road contractors on the Darling Downs in 1934, the Thiess brothers rose to extraordinary heights with their company becoming the world's largest contract miner by 2015.
In the midst of Australia's energy crisis in the 1940s, the Thiess brothers unlocked vital coal reserves in Queensland and New South Wales by pioneering large-scale open cut mining.
This leadership role in the resources sector expanded to the international stage in the 1960s when Thiess Peabody Mitsui founded the nation-building export trade with Japan in high-quality Queensland coking coal.
In the 1980s, Thiess launched its mining know-how into Indonesia and its international reach has progressed ever since.